Innovation in Small Business Lending Thursday, October 16, 2014

Innovation in Small Business Lending Moderated by: Bob Coleman, Editor, Coleman Report Featured Panelists: Mark Cerminaro, Rapid Advance Tim Craczewski, Creditera Jared Weitz, United Capital Source

Innovation in Small Business Lending Takeaways 1) Innovation is increasing speed to market 2) Innovation is making the product a viable option for Main Street 3) Data analysis is making us better lenders 4) This is no longer a niche product

Innovation in Small Business Lending Small Business Lending Definition of small business lending (e.g. contrast with consumer) Who uses the product today? How has the customer changed? How has the product changed? (Be specific -- interest rates, repayment, structure, delivery to Main Street)

Innovation in Small Business Lending Technology Software is internally developed. How has this changed over the past 5 years What outputs does your software/technology provide today? Using technology to tracking loan performance Automation is a buzz word. Are we there yet? “Deskill” credit underwriting

Innovation in Small Business Lending Data Driven Decisions The focus is what we are doing today. A little history lesson is appropriate. We are becoming experts at mining data Historically, 75% restaurant and retail Main Street. Today? What type of data points are we using today? Data Algorithms?

Innovation in Small Business Lending Filling the Void by traditional small business lenders What are you doing to get the word to Main Street about your product? Shift in customer demographics Increase in loan sizes

Innovation in Small Business Lending Questions?