Share the risk on small business loans. Keep the relationship.
CreditRiskProtect gives banks, credit unions and CDFIs a new way to say yes to small businesses. Loan-level credit insurance from a carrier rated Excellent by AM Best covers 80% of the qualifying principal loss on each eligible loan you enroll, while your institution keeps the loan, the borrower and the operating account.A new way to say yes to small businesses: credit insurance from a carrier rated Excellent by AM Best covers 80% of the qualifying principal loss on eligible loans, and you keep the loan and the relationship.
The challenge
Your declined borrowers aren’t going away. They’re going to online lenders.
Small businesses want a lender who will say yes and stay with them. When a request falls just outside the conventional credit profile, the borrower often goes somewhere else: to an online lender, a merchant cash advance provider or another alternative lender that answers quickly, often at a far higher cost.
Good borrowers, too much risk
Creditworthy businesses get declined when a single loan carries more risk than your institution wants to hold alone, even when the borrower is exactly the relationship you want.
Small loans, same workload
Underwriting a loan under $350K takes as much work as a much larger one, so it often isn’t profitable. Many institutions focus on larger loans, and smaller borrowers end up with online and alternative lenders.
You lose more than the loan
When a small business goes elsewhere for credit, its deposits, operating account and future borrowing usually follow. One declined loan can cost the whole relationship, and once an alternative lender has the borrower, it usually gets the next loan too.
How it works
One application. The right lending path.
A borrower applies through your institution. The platform analyzes it and delivers a platform-driven recommendation on risk-based pricing and the lending path, and your team makes the decision. When a creditworthy loan falls outside your conventional credit profile, CreditRiskProtect gives you a way to say yes instead of no.
One Platform. Every Loan.
Platform-driven recommendation
One Platform. Every Loan.
- 1Borrower application$350KUse of funds: Working capital
- 2Received by the lenderYour institution
- 3Platform-driven recommendation
- Credit data sourced automatically
- Cash flow data validated
- Risk profile and pricing recommended
- 4Chosen by the lenderConventionalCreditRiskProtectChosen
- 01
Your borrower applies
The application comes to your institution, on the Lenders Cooperative platform.
- 02
Platform-driven recommendation
Integrations source and validate credit and free cash flow data, and the platform calculates expected loss, establishes the risk profile and recommends risk-based pricing for each loan.The loan is fully underwritten, just faster.
- 03
You choose the path
When your team chooses CreditRiskProtect, a private insurance partner shares the credit risk, and your institution keeps the borrower and the deposits.
A second path
Where CreditRiskProtect fits
CreditRiskProtect works alongside your conventional lending, not in place of it. It is for creditworthy small business loans that fall just outside your credit profile, the ones you’d otherwise have to decline.
Conventional
For loans that fit your credit profile.
- Your institution holds the risk
- Your own credit policy and pricing
CreditRiskProtect
For small business loans you want to win but would rather not carry alone.
- Private insurance covers 80% of qualifying principal loss
- Platform-driven recommendation with full risk assessment
- Conventional underwriting, focused on speed to funding
- You keep the loan and the deposit relationship
Why lenders use it
What CreditRiskProtect means for your institution
Grow small business lending
Say yes to more creditworthy small businesses without taking on the full credit risk of every loan.
Win and keep the full relationship
Pair the loan with the operating account so you capture deposits, treasury services and the long-term relationship, not just a single loan.
Manage risk and concentration
Sharing the credit risk gives your team more room to grow inside its risk appetite and concentration limits.
Decide faster with less paperwork
Platform-driven recommendations built on free cash flow data, not months-old financials, so your team can give borrowers a faster answer.
Built on the Lenders Cooperative platform
From application through servicing, in one place
More than 200 financial institutions work with Lenders Cooperative to grow commercial lending.
Digital origination
A borrower-friendly application and a single workflow for your lending team.
Cash flow insight
Cash flow visibility at origination and through the life of the loan, in the same platform your lending team already uses.
Integrated servicing
Service the loans on the Lenders Cooperative platform with your own team, or let our servicing team handle it.
Eligibility, program terms, pricing and expected returns are covered in a private briefing with our team, tailored to your institution.
Request a program briefingFAQ
CreditRiskProtect frequently asked questions
What is CreditRiskProtect?
CreditRiskProtect is a small business lending program from Lenders Cooperative. Loan-level credit insurance from a carrier rated Excellent by AM Best covers 80% of the qualifying principal loss on eligible small business loans, while the lender keeps the loan, the borrower relationship and the operating account.
Is CreditRiskProtect a government program?
No. The risk is shared with a private insurance company, not a government guaranty. It gives lenders another way to say yes to creditworthy small business loans.
Why do small businesses turn to online and alternative lenders?
Speed and a yes. Online lenders and merchant cash advance providers answer quickly, often at a far higher cost to the borrower. CreditRiskProtect lets your institution give creditworthy small businesses a fast yes from the institution that already holds their deposits, so the relationship stays with you.
Is a CreditRiskProtect loan fully underwritten?
Yes. Every CreditRiskProtect loan is fully underwritten. The difference is how the data arrives: integrations source and validate credit and cash flow data automatically, so your team reviews verified information instead of collecting it by hand.
Does CreditRiskProtect replace our conventional lending?
No. It works alongside your conventional lending as a second option for creditworthy small business loans that fall just outside your credit profile.
Does CreditRiskProtect replace our SBA program?
No. CreditRiskProtect is a private alternative for creditworthy loans that fall outside your conventional credit profile. Your SBA lending, including SBA Express and 7(a) Small, continues to follow SBA program requirements, and your team chooses the right program for each loan.
What loan sizes does CreditRiskProtect cover?
CreditRiskProtect covers small business loans from $25,000 to $350,000. Eligibility and program terms for your institution are reviewed in a private briefing.
What happens if a covered loan defaults?
If a qualifying loan defaults, the credit insurance policy protects your institution against covered losses, under the terms of the policy. Your institution keeps the borrower relationship throughout.
Who can offer CreditRiskProtect?
CreditRiskProtect is built for banks, credit unions, CDFIs and other regulated small business lenders. Our team can walk through whether your institution is a fit.
How does CreditRiskProtect help us win the operating account?
Because you keep the loan and the borrower relationship, you can pair the loan with the operating account and deposits, capturing the full small business relationship instead of a single transaction.
Where can we get program terms and pricing?
Eligibility, program terms, pricing and expected returns are shared in a private briefing with the Lenders Cooperative team. Use the form below to request one.
Get started
Request a CreditRiskProtect program briefing
Grow small business lending while sharing the credit risk.
- How the program fits alongside your conventional lending
- Eligibility, program terms and pricing for your institution
- Expected returns and what it takes to launch
Private briefing. Detailed program materials are shared directly with qualified institutions.
CreditRiskProtect is offered by Lenders Cooperative. Program availability, eligibility, coverage and pricing are subject to underwriting, program requirements and the terms of the applicable insurance policy. Insurance coverage is provided by licensed insurance carriers, not by Lenders Cooperative. The insurance carrier is rated A- (Excellent) by AM Best. Lenders Cooperative may receive compensation in connection with the placement of insurance coverage. CreditRiskProtect is not affiliated with or endorsed by the U.S. Small Business Administration.