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LEVERAGE offerings allow CUs to expand commercial lending capabilities

BIRMINGHAM, AL (February 18, 2019) — In a time when business lending for credit unions is gaining momentum, a new opportunity is available to increase market share by providing loans to members without the financial overhead of a full-service loan staff. Through LEVERAGE Business Lending, LEVERAGE, and Member Business Financial Services, the newest LEVERAGE partner, credit unions can be positioned for success at a prime time for the industry.

MBFS is a traditional commercial lending provider and offers comprehensive training to credit union boards of directors and senior management through multiple formats, including online webinars, live video, and in-person training. All programs are customized to meet the specific needs of individual credit unions with consulting engagements focused on a wide range of strategic topics, including: loan policy development, operational processes and procedures, sales planning, and risk management.

A serious challenge for credit union business services programs is hiring and retaining skilled, qualified candidates in a cost-effective fashion. To address this need, MBFS provides a Relationship Manager in a geographic market who serves the participating credit unions. Credit unions share in new loan originations and have the option to purchase a portion of all loans originated. This regulation-compliant system allows credit unions to efficiently grow portfolios of both member and non-member business loans.

LEVERAGE Business Lending was established to be a loan service provider, assisting in the packaging, underwriting, closing, and servicing of Small Business Administration (SBA) loans. By teaming with LEVERAGE Business Lending, credit unions gain access to experienced SBA loan processing and servicing operations that allows them to reap the benefits of SBA lending without any additional infrastructure.

While other institutions are tightening lending margins, participation in the SBA loan programs increases net interest margins and fee income. Credit unions can make sound competitive commercial loans at improved margins. Additionally, guaranteed funds from the SBA (75-90 percent of the total loan amount) do not count towards the credit union’s regulatory MBL cap.

Another option bringing new business to the table is Member Business Financial Services, LLC, (MBFS), created in 2008 to assist credit unions in providing services to the local business community in a safe, efficient, and effective manner. Owned by credit unions, MBFS uses inside perspective to capitalize on the cooperative nature of the credit union movement in helping these institutions provide business loans and other financial services at a cost lower than they could individually.

LEVERAGE provides solutions designed to promote credit union competition in the marketplace and helps support credit unions in their efforts to provide the best possible services to their membership.

Contact LEVERAGE today at consult@myleverage.com.


About LEVERAGE

LEVERAGE, the Service Corporation for the League of Southeastern Credit Unions & Affiliates, is the business services provider that leverages credit union system resources, relationships, and industry knowledge for optimal performance and sustained growth of its clients and business partners. We work to offer credit unions best-in-class products and services that result in reducing costs, maximizing results, and making the most difference. For more information, visit MyLEVERAGE.com or follow LEVERAGE on Facebook and LinkedIn.

Contacts

Mike Miller
Communications Manager
850-558-1176
mike.miller@lscu.coop

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