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SMB Lending: Spotting the Holy Grail Applicant

SMB Lending: Spotting the Holy Grail Applicant

SMBs that apply for credit only once in 24 months are more likely to possess characteristics important to lenders.

Boston, February 22, 2017 – In the U.S. market for financing small and midsize businesses, the lenders with the most information about their prospects will carry the least loan portfolio risk and the most profitable customers, while those with the least information will carry the most risk and the fewest profitable customers. SMBs vary by their loyalty, credit-application frequency, likeliness to bundle services, and loan-application-experience preferences. So how can banks identify among their many lending opportunities those that are most beneficial?

This report is based on an August 2016 Aite Group survey of 501 SMBs that recently applied for credit and presents a personality profile or persona that banks can use to identify their most important applicants: those that are most price-sensitive, most likely to bundle services, and least likely to be attracted to alternative lenders.

This 20-page Impact Note contains three figures and 14 tables. Clients of Aite Group’s Wholesale Banking & Payments service can download this report, the corresponding charts, and the Executive Impact Deck.

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This report mentions Baker Hill, CRIF, D+H, FIS, Fiserv, Genpact, Jack Henry, LexisNexis Risk Solutions, Linedata, Moody’s, nCino, Nucleus Software, Polaris, Provenir, Sageworks,, SmartBiz, Wipro, and Wolters Kluwer.