There is no one-size-fits-all when it comes to lending solutions. Your choice will depend on the features and perks you want to provide business borrowers. Are you focused on offering an above-average lending product that will bring in revenue? Or are you eyeing a business lending program that’s truly convenient, fast, user-friendly, and profitable?
We’ve compiled the best lending solutions of 2023 below, so you can find the one that fits your business.
1. Embedded Lending
Embedded lending is not exactly a new kid on the financing block, but you’d be surprised at the number of lending professionals that don’t have the slightest clue about it. True to its name, embedded lending natively weaves ready credit into the services or products of a merchant. This invariably results in superior options for customers who may otherwise be sidelined or underserved by traditional lenders.
With this lending solution, your small business customers can access the capital they need when they need it, allowing them to grow and thrive. This means an opportunity to increase lifetime value (LTV), create new revenue streams, and boost your customer engagement and satisfaction levels. That’s a big win, no matter how you look at it. That said, not all embedded lending platforms are built the same, and you need a partner you can trust to quickly and painlessly put capital within reach.
LendingFront, for instance, allows you to extend capital to business customers by talking to them through their POS systems. You use both the data and the technology of the POS to send your pre-approvals and to get your money back.
2. Digital Wallets
Digital wallets need no introduction. According to Juniper Research, they are incredibly popular right now, with research estimating that more than 5 billion people worldwide will be using digital wallets by 2026. In terms of how it works, a wallet securely stores versions of debit and credit cards, removing the need to carry a physical card or enter card details when making on-the-go payments. Of course, this is a huge plus for customers from a convenience standpoint, but for you, digital wallets offer a quick and popular way to grow your lending program.
You’ll liaise with merchants to facilitate their digital wallet endeavors. You’ll charge a nominal fee for this service. Because digital wallets are becoming a staple in digital payments, no merchant would want to lose customers.
3. Digital Lending
Out of all the options on this rundown, this is perhaps the quickest way to reinforce your lending program. You’re simply steering clear of the traditional lending route and offering an end-to-end digital lending experience instead. No physical headquarters, no physical headquarters, and no spending big money. You’re steering clear of the traditional lending route and offering an end-to-end digital lending experience.
The beauty is that you can pass the monetary perks you get by not investing in the workforce and physical infrastructure onto your customers. In practical terms, you’ll be in a great position to offer affordable loan products, a benefit your customers will greatly appreciate.
The Best Lending Option is Well Within Reach
As a lending business, it’s understandably hard to pinpoint a lending solution that will ultimately guarantee the best bang for your buck. But by choosing from the formidable options above, you’ll be well on your way to creating a lending program that is as effective and pleasant to customers as profitable to you. Choose carefully, and remember that the best lending solution offers more than just the bare minimum.
It depends on your personal preference and decision to go for any of the above lending options. Each lending option comes with specific features and benefits that you should know about. So you can do your own research beforehand.
