Online Loan Applications for Businesses

Mark Messick
Mark Messick


By Mark Messick

Technology should be useful, not disruptive. What good does it do to employ new technology if it doesn’t also serve your community bank’s mission?

There have been many significant advancements in technology since the recession. Some of it banks are comfortable with, and some of it not so much. Take online lending for example: The lure of high yields and customer response times has led some large banks to take the leap and partner with platforms to provide alternative finance loans.

Many community banks are not interested in these kinds of loans because they typically cost more to originate, traditionally are riskier, and may not fit with their cultures. But the ability to attract customers to an online experience doesn’t mean your community bank has to make risky loans or even approve them instantly. In fact, it can leverage this kind of technology to drive a better customer experience and reduce the workload on your bank’s lending staff.

As with the experience that consumers enjoy today with mortgages and auto loans, banks are beginning to see the light. This happens when they offer a similar experience to business owners, enabling them to apply online and submit financial documents in a digital way to build a loan package of any size—not just the small ones.

Likewise, online commercial loan application packages can provide workflow and financial analysis tools that create a more efficient and less costly process. Add to that pipeline reporting modules and loan-specific tools for complex transactions such as commercial real estate and even auto decision-making, if you do want to go there. There are even marketing options for mining your current customer database to pre-qualify businesses for loans.

Essentially, today’s technology allows you to do more with less and can tie your systems together in an end-to-end fashion that enables all stakeholders to work in one environment, while driving profits in your community bank’s small business and commercial lending areas. Now is the time to see what FinTech might be able to do for you.

Mark Messick ( is a managing director with ProfitStars Inc., a technology firm in Allen, Texas.