Isabella Bedoya’s Post

I was chatting with a customer recently about shifting from debt settlement to lending services. Here's the advice I shared with them: 1. Take it step by step: There's no need to dive headfirst into lending. Think about starting as a lead generation company, screening applicants for other lenders. 2. No lending license needed: For lead generation, you don't have to worry about getting a lending license, which makes the transition easier. 3. Gentle credit checks: As you grow, look into using soft credit pulls. These let you screen applicants without hurting their credit scores. 4. Stay on top of rules: Make sure your company, website, and practices meet credit bureau requirements. This will help you work more smoothly with resellers. 5. Think ahead: Keep future needs in mind, like bankruptcy filings, which might require specific types of credit reports. 6. Options for consumers: In the meantime, look into credit monitoring tools that consumers can initiate themselves. You can brand these with your company name. Keep in mind, changing your business model doesn't happen overnight. Start planning early, get familiar with the rules and regulations, and team up with partners who can support you as you grow.

A recent survey conducted by Small Business Loans Australia has unveiled a significant trend among small and medium-sized enterprises (SMEs) in Australia towards the adoption of artificial intelligence...Read More #business #survey #australia #AI #enterprise https://lnkd.in/gpStUzZ9

In 2013, I was recognized among the top 1% of originators in the country. My production soared from $28M to $58M in just one year with the help of only one additional hire. This exponential growth would not have been possible without having a foundation in place to support the change that needed to occur. Outcome In 2009, I originated $12M in loans, but I knew our team was capable of more. I began to build a strategy that would allow our team to work more productively in order to originate $50M in production, while keeping the same operational staff and only needing to hire 1 additional Loan Officer to assist with structuring the loans that the team was capable of closing. Strategy To reach $50M, this would mean our production would need to increase from 5 loans a month to 20. In order for our team to become 4x more productive, I would need to fully understand the types of work that each of us were doing, identify the types of work each of us SHOULD be doing, and leverage technology to do the work that we no longer needed (or wanted) to do. Culture In order to execute on the strategy, I established a culture that would support ongoing change and innovation. This meant empowering people to work alongside technology and leveraging their experience, creativity, and expertise to assist in defining what the technology needed to do. Focus Knowing that this change would occur over time, I ensured there was transparency to the future roadmap of change that would need to occur, but provided clarity in identifying the steps that could begin to be taken and clearly defined metrics that validated that we were making progress. Intent With a framework in place to create focus around what needed to occur, I began to shift the intentions of each individual to ensure they became focused on performing the more valuable work that they should be doing. Commitment By staying committed to the process and remaining open to feedback, I ensured that progress was always being made towards achieving the ultimate outcome. The End Result While the outcomes were not realized until 2013, the likelihood to achieve them continued to increase through each iteration of the process. As a business owner with access to modern day technology, you have the opportunity to allow your people to become exponentially more productive, which will allow you to achieve the outcomes you desire. What will it take? Focus. Intent. Commitment. If you're interested in learning more about how this approach can transform your business, comment "INTENT." I can help you implement these strategies to achieve extraordinary growth and productivity. Shout out to some of the original Miksta Team members - Thank you for your commitment, it was your willingness to embrace the future that led to our success. Dina H. Annamarie Assaf Amy Tybor Heather R. Homcho Erica Johnson Marlena Robbins Jason Randolph AKA 'The Best Around'

"Success is not just about making money, it's about making a difference. The ability to demonstrate financial stability and responsible growth is what sets great businesses apart" For companies, financial stability is the cornerstone of securing a loan. Here's a closer look at how consistent revenue streams & profitability from core offerings play an essential role in closing loans Consistent Revenue Streams: * Recurring Revenue Models: Subscription-based services like Software as a Service (SaaS) are beautiful to lenders. These models create recurring revenue streams that ensure long-term income predictability, which directly improves cash flow stability. The ongoing cash generated by these services not only sustains business operations but also secures the company’s ability to meet loan obligations * Long-Term Client Contracts: Securing contracts with clients over extended periods further strengthens revenue stability. Lenders are more confident in companies with committed, ongoing sources of income, as it reduces uncertainty in future cash flows Profitability from Core Offerings * Strong Margins & Profitability: For a company to be seen as a low-risk borrower, it must demonstrate not only revenue growth but also the ability to convert that revenue into profit. High margins on core services such as custom software development, IT consulting, or managed services show that the company efficiently controls costs & maximizes profits. This is essential for ensuring that the company has enough retained capital to comfortably cover both operating expenses & loan repayments * Balanced Service Portfolio: Diversification within an IT company’s product & service offerings is another key consideration for lenders. A balanced mix of services from cloud computing to cybersecurity solutions ensures the company is not overly reliant on a single revenue stream. This diversification helps to stabilize cash flow, particularly during periods of market volatility, making the company a more resilient borrower * Scalability & Future Profit Potential: IT companies that demonstrate a scalable business model with room for significant growth in revenue without a proportionate increase in costs are particularly attractive to lenders. Whether through expanding into new markets, launching new products, or automating processes, scalability indicates that the company can increase profitability over time, thereby enhancing its ability to meet future financial obligations Strategic Planning for Growth & Loan Utilization * Investment in Revenue Generating Activities: IT companies seeking loans must outline how the borrowed funds will be used to drive future growth. By showing a direct link between loan utilization & revenue-generating activities such as marketing, product development, or geographic expansion the company strengthens its case for the loan #odoo #vulture #FinancialStability #SalesGrowth #BusinessFinance #RevenueStreams #SaaS #CashFlow

How Fintech Lenders Can Help Capture Small Business Opportunity: This creates a massive opportunity for fintech lenders. When seeking a loan, small businesses will often look first to their depository bank. That's ...

Need Bizagi insight? Join Bizagi Days today at 10am Pacific Time - Register here, you still have time to sign up and join!! -https://lnkd.in/gkXTiEKF #LowCode #AiAgents #ProcessIntelligence #WorkflowAutomation #Agile

You might be misevaluating your Loan options by comparing IRR. I've seen many "finance experts" advise CPG brands on how to assess loan terms. I'm here to say they are usually wrong - more so as it relates to Merchant Cash Advances (MCAs)….. well, at least not communicating the full picture.   Here's why. -- 1) 🧐 Single-perspective usage of IRR   "Experts" will tell you that IRR is a way to annualize and account for timing of cashflows to get the apples to apples comparisons of different cashflow streams (or in this case, the loan options)…. They're not wrong - this is one of many ways to use IRR.   BUT, on a deeper level IRR actually does much more.   IRR is from the perspective of the person outlaying the money, and defined as the rate/measure at which your cashflow is Net Present Value accretive or dilutive (ie increases or decreases valuation). In capital budgeting, the best decision is to increase NPV.   So the truth is, the IRR quoted when evaluating a loan is actually the lender's IRR. Curbing professor Virgil Leung aside (feel free to reach out if interested in the finance math details) …. The MUCH more sensitive levers to increasing NPV is the growth of near term cashflows (ie profitable sales you are able to unlock with the loan) and increasing growth rates that COMPOUND over time.   As NPV Grows, weighted average cost of capital drops. -- 2) 💳 IRR is annualized and assumes re-drawing of the loan.   MCAs are very short term and a typical 6-month "term" that many MCAs offer is actually equal to a 3-month weighted average term.   Therefore the IRR of the MCA implicitly assumes that you make the same decision 3 more times throughout the year. In other words, an MCA's IRR is really only a 1/4 annual weighting, and if you are comparing it to an ABL or a Credit Card LoC % you are already comparing apples to oranges.   To clarify, I am not here taking a stance on being for/against MCA loans. I am simply saying that just like everything else in this world - there's a time and a place for them past simply the IRR.   So next time your "finance expert" advises about IRR, make sure they understand this themselves or you might be better off asking Chat GPT!

How AI Enhances Loan Monitoring and Loan Portfolio Management Artificial Intelligence (AI) has revolutionized various industries, and the financial sector is no exception. In particular, AI has proven to be invaluable in loan monitoring and loan portfolio management. Here are some ways AI is enhancing these processes: Enhanced Risk Assessment * Predictive Analytics: AI algorithms can analyze vast amounts of data to identify potential risks early on. This includes factors like borrower credit history, income, and market trends. * Fraud Detection: AI can detect fraudulent activities by identifying anomalies in loan applications and transaction patterns. * Credit Scoring: AI-powered credit scoring models can provide more accurate assessments of borrowers' creditworthiness, reducing the risk of lending to defaulting customers. Improved Loan Origination * Automated Decision-Making: AI can automate many aspects of the loan origination process, such as pre-qualification and underwriting, leading to faster decision-making and improved customer experience. * Personalized Offers: AI can analyze customer data to offer tailored loan products and terms that meet their specific needs, increasing the likelihood of loan approval. Efficient Portfolio Management * Portfolio Optimization: AI can help banks optimize their loan portfolios by identifying potential risks and opportunities. This includes identifying areas where the portfolio is overexposed or underexposed to certain risks. * Stress Testing: AI can simulate various economic scenarios to assess the resilience of the loan portfolio to adverse events. * Early Warning Systems: AI can detect early signs of financial distress among borrowers, allowing banks to take proactive measures to mitigate losses. Real-time Monitoring and Alerts * Continuous Monitoring: AI can continuously monitor loan performance, identifying potential issues such as late payments or rising delinquency rates. * Real-time Alerts: AI can trigger alerts when specific conditions are met, such as when a borrower's credit score drops below a certain threshold. By leveraging AI, banks can improve their loan monitoring and management capabilities, reduce risk, and enhance their profitability.

🤔 Weekly wonder 🤔 How can automation overcome loan origination process challenges? Automation can help speed up the loan origination process by removing time-consuming manual processes still in use by many lenders today. 🏅 Pre-qualification: Automation speeds up pre-qualification so you can instantly establish whether an applicant is ready to proceed or whether further documentation is required. 📜Application: Automating the loan application stage with self-serve technology reduces the need for your staff to assist applicants and standardizes the process for consistency across all borrowers. 📋 Application processing: Flag any applications with missing information and return these to the applicant to be amended. Underwriting: A credit scoring system uses automation to help you assess an applicant’s credit score, risk, and borrowing potential. 📝Credit decisioning: You can use low-code technology to automate responses once a credit decision is reached. Establishing these rules also ensures a consistent, unbiased approach is taken to all decisions. ✅ Quality check: Automation can help them assess the application against internal and external rules and regulations before it is sent to funding. 💸 Funding: Automation can play a key role by releasing funds as soon as a loan is approved, or on an agreed date, giving the applicant visibility into when the funds will arrive Low-code technology can help you overcome loan origination process challenges and drive long-term success: https://okt.to/w3naGP