Banks recognize the significance of the SMB market, but often lack the necessary tools to provide additional capital without increasing exposure to risk. Alternative providers understand the power of daily sales data.
Scottsdale, AZ (PRWEB) November 09, 2011
Capital Access Network, Inc. (CAN) today announced from the Risk Management Association and American Banker Small Business Banking Conference two unique capital delivery services designed to help banks provide more money to the small and mid-sized business (SMB) market.
The company developed its Different Look and Pre-Look programs in response to a growing chasm between financial institutions’ ability to deliver capital and SMB loan applicant requests.
The Different Look and Pre-Look programs allow banks to offer alternative funding options without any significant bank investment to SMB customers that may not qualify for traditional loan products. Through a referral relationship, banks can leverage CAN’s Daily Remittance Platform, including a proprietary scoring model and portfolio management process, to offer applicants capital. CAN companies assume the risk on the transaction, while the bank gains customer satisfaction, retention and cross-sell value. The programs can be marketed through branches, direct marketing campaigns, loan officers or through white labeled or co-branded online applications.
Using daily sales data, such as cash deposits and credit card volume, CAN companies are able to more accurately assess a company’s fiscal health and provide appropriate alternative funding options. On the back end, daily sales data is used to gauge risk every 24 hours, versus a bank’s typical 30, 60 and 90 day risk review process.
According to CAN’s 2011 Spring Small Business Barometer report, 77 percent of small business owners were not offered alternative funding options by their bank after being denied a traditional loan. However, more than 71 percent of those business owners reported they would have considered an alternative funding option had the bank offered one, and the offer would have improved their opinion of the bank significantly.
“Banks’ reliance on the provision of small business capital through traditional loan product offerings and models is limiting their ability to satisfy the needs of this segment,” said Glenn Goldman, CEO of CAN. “Banks recognize the significance of the SMB market, but often lack the necessary tools to provide additional capital without increasing exposure to risk. Alternative providers understand the power of daily sales data. CAN’s Different Look and Pre-Look programs bridge the gap, giving banks the ability to say yes to more business owners without increasing portfolio risk.”
Following the denial of a small business loan application, banks can leverage CAN’s Different Look program to determine a business’ viability for alternative funding products. CAN’s Pre-Look program reviews hard-to-approve businesses within the bank’s existing customer base. The bank can then proactively offer alternative funding options prior to an application being submitted, avoiding a customer dissatisfying decline experience.
These working capital products can be provided either as a bank-branded product, or on a referral basis.
“We understand the challenges facing small business bankers today,” continued Goldman. “We’ve designed these programs to help banks better meet the changing needs of the SMB market and ultimately create new revenue opportunities, while maintaining their brand reputation and standards. After 12 years and tens of thousands of fundings, we have the history, data and processes to help banks say ’Yes’ to the right customers at the right time with the right amount of capital.”
About Capital Access Network, Inc.
Capital Access Network, Inc. (CAN) delivers innovative financial products and services, led by its flagship product, the Daily Remittance Platform™, for small and mid-sized business (SMB) capital providers. CAN offers SMB lenders, credit card issuers, lessors, processors, acquirers, banks, and other capital providers customized platforms and hosted services that enable “daily” remittance-powered financial products that improve underwriting decisioning and delivery, extend customer lifecycles, control costs and enhance portfolio performance. Learn more at http://www.CapitalAccessNetwork.com.