FINSYNC has created a simple way for banks and credit unions to enable their business customers to apply for loans completely online. In our latest video, Eddie Davis provides a thorough walkthrough of FINSYNC’s Plug and Play electronic loan application solution for banks and credit unions. COVID-19 and the PPP loan process caused the lending market to shift almost completely online. By necessity, borrowers had to apply for PPP loans electronically, and lenders had to serve that need electronically. In many cases, behind the scenes was an extremely manual process. People were up late at night using all kinds of methodology for workflow management, collecting documents, and all of the processes were created and developed on the fly. Borrowers came to realize that it is possible and desirable to complete application workflows with their bank electronically. This video is about how Banks can deliver on that value proposition outside of PPP loans and PPP forgiveness, and make the transition to a completely digital traditional electronic business loan application process. [embed]https://www.youtube.com/watch?v=71aAS7D4kYw[/embed]
The Borrowers ExperienceWhen a financial institution implements FINSYNC’s tools we provision the borrower intake forms. The intake form has your logo featured prominently. We also support traditional types of loans on our loan application. Our lender’s portal is a co-branded experience and we provision a unique URL for you. So where you see “modern lender” in the URL in the video, that's where your financial institution’s name would be. That makes it easy for you to direct people from your business facing portions of your website, your emails, and other marketing campaigns to be sure that your customers can easily get to your lender’s portal page. In the traditional financing section are the types of loans that you can create. These are the “purposes,” and within the portal, you can create as many loan products as you wish. The borrower works through the various tabs to collect their information and set up their account. Then, they are given access to the portal. Once the borrower has access to the portal, they can then submit documentation to your team if required as part of the process for that particular loan product.
The Lender’s ExperienceYour team of business Bankers will login to their portal and they will process loan applications through your internal vetting process all the way through to funded and then pay back. You set up the portal by creating the various loan products that you offer. You'll go through an intake form to set up each new product. Then set the pre-qualification guidelines that the application will then display. When you receive a loan application, you will receive a notification. The application will then either be rejected out of hand if you feel that it's fraudulent or if it's not relevant to your institution. Otherwise, the loan application will get worked through the various stages of vetting. The lender’s portal is a multi-user environment. Each user may have different portions of an application workflow that they handle. Users can assign themselves or unassigned themselves. Or, a specific user can assign certain tasks to certain people on the team.
SummaryThe FINSYNC Lender’s Portal is a full solution for loan application intake and processing. Any lender can now offer electronic loan applications to their customers. Zero core integration required for one low monthly subscription.
Most large corporations have some debt as a standard financing practice. Depending on the economic situation, debt financing can be far cheaper than investor financing. But for many small businesses, having to service debt each month can mean the difference between taking home a paycheck or not, hiring one more employee or working extra hours, or paying your bills on time. Cash is oxygen to small businesses, so you can, and should, pay down your debt. Here are several ways in addition to sacrificing income, new hires, and personal time.
The US Small Business Administration (SBA) Debt ReliefFrom the SBA website: “The SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020.” If you have one of these loans, you do not need to apply for this assistance. According to the SBA, assistance will be automatically provided as follows:
- Loans not on deferment, SBA will begin making payments with the next payment due on the loan and will make six monthly payments.
- For loans currently on deferment, SBA will begin making payments with the next payment due after the deferment period has ended, and will make six monthly payments.
- For loans made after March 27, 2020, and fully disbursed prior to September 27, 2020, SBA will begin making payments with the first payment due on the loan and will make six monthly payments.
SBA Economic Injury Disaster Loans (EIDL)On June 15, the SBA announced that the EIDL program is open again. Small business owners in the US, including Washington D.C. and territories, can apply for an Economic Injury Disaster Loan advance of up to $10,000. This loan advance will not have to be repaid. Recipients do not have to be approved for a loan in order to receive the advance. The amount of the loan advance deducts from the total SBA loan eligibility.
Corporate AssistanceThat’s right: corporate America is helping out America’s small businesses. Here are just a few examples of US enterprises lending a helping hand to small businesses. While such help is generous, keep in mind that it is in these corporations’ best interests to help out the small businesses that put money in their bank accounts. For example, Morgan Stanley's Brian Nowak estimates small businesses comprise 30% to 40% of Facebook's overall advertising base.
- Facebook is offering U.S. small businesses $40 million in grants to help them navigate the coronavirus crisis. Go to facebook.com/grantsforbusiness to determine if your business is eligible. They also rolled out additional features to help small business owners. Facebook now lets business owners to start a Facebook personal fundraiser for their own business. So they can ask their most loyal customers for help with operating costs during the crisis. In addition, they made it easier for businesses to communicate temporary service changes — like changes in open days and hours — to their customers.
- Lowe’s has put up more than $50 million in various types of relief funds for small businesses since the COVID19 pandemic hit the US. In this latest round of funding, the company will “offer small business grants through some of the company's key partners. Including its supplier diversity network. The funds will also expand support to small business home improvement professionals.”
- Vistaprint, Facebook, Verizon, and others offer grants that can help keep your small business afloat during the coronavirus crisis. Companies can qualify for these grants if they have 3 - 20 employees. Located in an economically vulnerable community, and have been impacted by the COVID-19 crisis.
- Finally, here’s a guide of all the companies (as of this writing) offering small business assistance in many different ways to help America’s small businesses weather this storm.
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