Small businesses are big contributors to the American economy. There are 33.2 million small businesses in the U.S. and they account for more than 99.9% of all U.S. business. However, their access to funding has historically presented itself as a challenge in small business lending. Unencumbered by legacy bank technology, Seattle Bank offers a frictionless loan process for small business borrowers in Washington State.
Traditional banks face obstacles with assessing creditworthiness and risk within small business lending, in addition to higher costs associated with processing loans. Small business loan approval percentages at big banks dipped from 13.5% in April 2023 to 13.4% in May 2023. Alternative lenders have stepped in to fill the void, but these loans often have a significantly higher interest rate.
With 40-50% of small businesses ranking access to capital as their main obstacle, there is an opportunity for community banks to step in and meet such challenges.
With their insight into local economic conditions and deep roots in the community, local banks are uniquely positioned to lend to small businesses. And unlike bigger banks that tend to be encumbered by legacy tech and complex decision-making processes, community banks like Seattle Bank bring a blend of agility and technological innovation to their financial services and solutions.
Leaning on its open API, cloud-based core technology platform, Seattle Bank partnered with open-banking fintech JUDI.AI to offer small business borrowers a simplified loan application that takes around 10 minutes to complete, and days instead of weeks to approve.
“By streamlining several aspects of the small business lending process, we help Seattle Bank create a fintech-like borrowing experience that, quite frankly, small businesses have come to expect,” said Gord Baizley, CEO of JUDI.AI. “Our small business-specific credit model, powered by machine learning, uses real-time, customer-permissioned bank transaction data to offer a more accurate snapshot of the financial health of the business.”
The loan platform streamlines a loan application, decisioning, and documentation process that’s typically highly manual, paper-based and cumbersome. JUDI.AI’s cash flow-based approach to underwriting eliminates the friction typically associated with small business lending, creating a more efficient way for Seattle Bank to evaluate the creditworthiness of small business borrowers.
“Loan applications can be a daunting process, but integrating JUDI’s open banking platform will create invaluable efficiencies for our small business borrowers,” said Josh Williams, Chief Banking Officer and Head of Partnerships at Seattle Bank. “This mutually beneficial partnership unlocks the ability for Seattle Bank to lend to small businesses quickly and seamlessly.”
With Seattle Bank’s fixed-rate term loan, small business owners can secure up to $100,000* for nearly any business-related expense, from opening a new business location to covering payroll and day-to-day expenses. With competitive rates, no prepayment penalty and quick processing times, borrowers can get the financing they need – fast and without the hassle of providing financial statements.
Seattle Bank’s core technology platform allowed it to easily integrate robust digital solutions to deliver a better banking experience, making credit more accessible and decisioning much faster for small business borrowers in Washington State.
Visit Seattle Bank’s website to view qualifications and apply online in minutes. Contact Seattle Bank’s Business Banker Albert Lau for more information at [email protected].
