Unlocking SMB Growth Through Automation and Embedded Lending Solutions
Successfully launching a small business (SMB) is no minor feat, as nearly 50% of small businesses fail within the first five years. At any given time, nearly 33% of business owners experience challenges accessing the necessary capital that they need to grow. Quick, reliable access to working capital is critical for small business owners and often means the difference between maintaining their operations or shutting their doors.
Recent tariffs, supply chain disruptions and macroeconomic fluctuations are currently impacting SMBs by narrowing their already-tight cash flow and to counter this, many business owners are looking to their local community financial institutions (FI) for assistance.
The problem for business owners is that too often, small business lending is a slow, complex process with cumbersome manual review workflows and rigid documentation requirements. Additionally, outdated legacy systems and siloed customer data hinder community FIs’ ability to scale their SMB lending programs to meet demand because these obstacles slow down the loan approval process and prevent institutions from effectively assessing borrower risk.
Addressing these issues depends on an institution’s selection of technology. With so many third-party vendors on the market, it can be overwhelming for FIs to choose the one that best serves their SMB financing needs. FIs should prioritize technology that enables smart, secure lending decisions such as AI-powered credit models or automated KYC and KYB checks.