Discover how your credit union can successfully launch and grow a business lending program with our Business Lending Starter Guide. This resource walks you through key steps, from market research and product design to compliance, technology, and marketing strategies. Learn how to attract small business borrowers, streamline operations, and create a profitable lending program—all while strengthening relationships with your members. Download the guide today and take the first step toward business lending success!
But where do you start? Business lending can feel complex, especially for credit unions new to the space. That’s why we created the Business Lending Starter Guide—a step-by-step roadmap to help your credit union build a successful and profitable business lending program from the ground up.
Key Steps to Launching Business Lending at Your Credit Union
1. Understand Your Market and Opportunity
Before offering business loans, it’s critical to assess your local market and understand member needs.
- Analyze transaction data to identify members paying competitors for business loans.
- Conduct surveys or focus groups to uncover financing challenges small businesses face.
- Research local small business trends to determine demand.
2. Set Clear Goals and Objectives
A successful lending program starts with measurable goals. Consider:
- Loan approval targets for the first 6-12 months
- Portfolio growth objectives over 1-3 years
- Member satisfaction and engagement metrics
3. Design Business Loan Products That Work
Offering the right loan products is key to attracting small business borrowers. Common options include:
- Term Loans: Ideal for larger, one-time investments like equipment or renovations.
- Lines of Credit: Flexible funding to manage cash flow or seasonal expenses.
- SBA Loans: Government-backed options for working capital, growth, and expansion.
Align your lending criteria with your credit union’s risk tolerance to ensure sustainability.
4. Build the Right Operational Infrastructure
Having the right systems in place streamlines loan processing and ensures compliance.
- Implement an Integrated Lending Platform to automate workflows and approvals.
- Stay compliant with regulations like TILA and ECOA to protect your institution.
- Use advanced risk management tools to assess borrower profiles effectively.
5. Partner with Experts for Faster Success
Business lending doesn’t have to be overly complicated. The right strategic partnerships can help:
- Lenders Cooperative provides loan origination and underwriting support.
- Work with local business organizations to connect with potential borrowers.
- Leverage SBA partnerships for additional loan options.
6. Train Your Team for Long-Term Success
Your employees play a crucial role in delivering a seamless business lending experience. Equip them with:
- Risk assessment and underwriting knowledge
- Compliance training to navigate regulations
- Member engagement strategies to build trust with borrowers
7. Market Your Business Lending Program
Once your program is ready, it’s time to attract business members.
- Promote your offerings through social media, email, and in-branch signage.
- Host educational workshops on topics like cash flow management and SBA loans.
- Share borrower success stories to highlight the impact of your loans.
Download the Guide
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