Small Business Loan Exchange Frquently Asked Questions
How does the Small Business Loan Exchange work?
Who can post loans?
Who can source loans?
Why would a lender want to post a deal it doesn’t want to close?
Why would a lender want to look at a deal another lender isn’t closing?
How can I join the Small Business Loan Exchange?
How much does is cost to use the Small Business Loan Exchange?
It seems too good to be true - is there a “bait and switch”?
What information does a deal poster need to make it available on the Exchange?
How can a searching lender learn more about a posted deal?
What is the ScoreEdge score that I see listed on all deals?
Can my lending institution use ScoreEdge in our existing process?
Can business brokers participate in the Small Business Loan Exchange?
How does the Small Business Loan Exchange work?
Lenders who have a deal they aren’t going to close, regardless of the reason, can make it available on the Small Business Loan Exchange. Business Brokers may also post deals which are seeking funding. Posted deals are clearly tagged as being input by a broker or lending institution. Other lenders seeking deals can monitor the Exchange to source available deals. This sourcing lender can request more information to facilitate their evaluation. The request may be automatically or individually approved on a case by case basis by the poster of the deal. If a sourcing lender is interested in closing they will pay the posting lender referral fee. The posting and closing lender are responsible for negotiating the referral fee.
Who can post loans?
Lenders or business brokers who are members of the Small Business Loan Exchange can post deals.
Who can source loans?
Only lenders who are members of the Small Business Loan Exchange can source deals.
Why would a lender want to post a Deal it doesn’t want to close?
To earn a referral fee on a deal it has already invested marketing and underwriting dollars into. Furthermore, if the deal was sourced from a lender’s existing client-base there’s the benefit of greater customer satisfaction as opposed to a straight decline.
Why would a lender want to look at a Deal another lender isn’t closing?
Every lender has their own unique ‘Credit Box’ or criteria of acceptance. What may be an unacceptable geography, industry, collateral coverage or credit exposure for one lender may be desired by another lender. The Exchange is created to allow lenders to profit from each other’s deal flow and ‘Credit Box’ differences.
How can I join the Small Business Loan Exchange?
Just click the following link: Small Business Loan Exchange Registration, review and execute the Small Business Loan Exchange terms of usage. You will receive a call from a Small Business Loan Exchange employee within 24 hours who will ask you a few brief questions before providing you a username and password. For best results we encourage new users to join one of our regularly scheduled web-demo’s (visit our website for sign-up details).
How much does is cost to use the Small Business Loan Exchange?
It is FREE to post available deals and FREE to search available deals. If a sourcing lender ultimately selects to close a deal it is the responsibility of the posting and sourcing lenders to negotiate a referral fee. The Small Business Loan Exchange will charge the poster of a deal the standard $125 scoring fee if:
A deal is designated as closed
A deal is withdrawn and then reposted
More than one deal is withdrawn in a calendar month
A deal expires while under the designation of Under Review or Under Agreement
It seems too good to be true - is there a “bait and switch”?
Absolutely not. Edgeware Analytics is committed to offering the Small Business Loan Exchange and the ability to post and search for loans for free. Edgeware Analytics does charge a fee for the ScoreEdge score, the Small Business Lending market’s most powerful risk score, and if a deal has been posted on the Small Business Loan Exchange for no fee then it is the poster’s responsibility to pay the standard fee if a Deal is closed by a sourcing lender.
What information does a deal poster need to make it available on the Exchange?
Standard application time information is input in order to post a deal such as: loan amount, zip code, industry code, debt coverage ratios for various periods, etc. Beyond specific variables the deal poster has the functionality to upload documents such as pdf’s, MS Word, Excel, which can include detailed financial statements, loan write-ups and other supporting files.
How can a searching lender learn more about a posted deal?
By clicking the Details button, a searching lender will see the ScoreEdge Score Report along with key variables. If more detailed information is desired a lender needs only click the Request button and a message is sent to the posting lender notifying them of the request. The Poster can then can grant (or deny) access to uploaded documents.
What is the ScoreEdge score that I see listed on all deals?
All posted deals will include the Small Business Lending market’s most powerful risk score: ScoreEdge. ScoreEdge is the underlying engine for the Small Business Loan Exchange. A predictive model built by analyzing hundreds of thousands of actual Small Business loans, ScoreEdge delivers a data driven risk score when it matters most: at origination. The ScoreEdge score runs from 300 to 700 - the lower the score, the higher the risk.
Can my lending institution use ScoreEdge in our existing process?
Yes. Used by national lenders, certified development companies, community banks and credit unions; Edgeware's ScoreEdge works in conjunction with a lender's established underwriting procedures to measurably improve the accuracy of small business lending decisions. There is no upfront cost to begin using ScoreEdge. Simply pay the $125 scoring fee for each new loan application that you score. To get started right away, please contact Edgeware Analytics at info@ew-a.com.
Can business brokers participate in the Small Business Loan Exchange?
Business brokers can participate in the Small Business Loan Exchange as a poster of Deals; only lenders can search new deals.