Commercial Lending, a Vehicle for Growth
More and more credit unions are entering the Member Business Lending (MBL) space. Commercial lending, particularly small business lending, is certainly a solid vehicle for growth for credit unions, with larger balances and higher margins than many consumer products. By and large credit unions see themselves as partners to the communities they serve. Funding small businesses, which in turn, provide employment to their members fits perfectly in most credit unions’ wheel house and is a natural extension of its mission. As more credit unions add MBLs to their lending portfolio, they need to develop an effective strategy and invest in flexible loan servicing platforms to create a successful MBL program.
Many credit unions find that partnering with a Credit Union Service Organization (CUSO) provides the best way to offer business lending services to their members, as well as offers an efficient underwriting back end loan servicing system. Additionally, a CUSO brings knowledge of business lending regulations and experience managing commercial loan participation portfolios. Midwest Business Solutions is a CUSO that services businesses throughout the upper Midwestern states. MWBS specializes in financing commercial and agricultural firms, which is key to the market they serve. The CUSO leverages CoreSoft lending platform from VSoft Corporation to offers variable, fixed rates, and flexible payments to match the timing of their business member’s cash flow.
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