Underwriting small business loans has always been a balancing act for lenders. On one hand, banks and non-bank lenders need to identify and fund promising businesses quickly to capture market share. On the other, they must carefully assess risk to avoid costly defaults. Traditional underwriting methods are often too slow, inconsistent, or inaccurate to meet … Continued
Direct lending has become one of the fastest-growing areas in private credit. With heightened competition, increasing regulatory scrutiny, and rising borrower demand for speed and transparency, direct lenders must find ways to operate more efficiently without sacrificing accuracy. One of the most powerful tools at their disposal is automated reporting and analytics. By eliminating manual … Continued
Commercial lending has long been one of the most complex and resource-intensive areas of banking. Unlike consumer lending, commercial loans involve larger transaction sizes, customized structures, extensive due diligence, and ongoing servicing obligations. For banks, this creates both an opportunity and a challenge: the demand for commercial credit continues to grow, but scaling operations to … Continued
Private equity firms operate in a highly regulated environment where compliance is not just a legal requirement, but a critical factor in investor trust and operational efficiency. The volume, complexity, and variability of regulatory documentation—ranging from fund formation filings to investor disclosures and transaction-specific reports—make the process time-consuming and resource-intensive. Artificial intelligence (AI) is emerging … Continued
In today’s volatile macroeconomic environment, credit risk is rising as lenders navigate higher borrowing costs, uneven asset performance, and growing uncertainty around collateral quality. Despite abundant capital, there are fewer qualified assets to deploy into—creating intense competition and greater pressure to underwrite and monitor risk effectively. At the same time, weaknesses in due diligence and … Continued
Non-bank lenders play a critical role in financing non-prime commercial borrowers—those with weaker credit profiles, inconsistent cash flows, or limited collateral—where traditional banks often step back. These borrowers represent both opportunity and risk, and the challenge lies in accurately determining which deals are viable. Artificial intelligence (AI) is transforming this process by enabling deeper, faster, … Continued
Syndicated loans are a vital financing tool for large-scale corporate borrowers, allowing multiple lenders to share credit exposure while meeting substantial capital needs. However, these loans can be challenging for lenders from an operational standpoint, due to their complexity. From loan origination to servicing, these transactions involve a high volume of documentation, data exchange, and … Continued
Middle market lending presents a unique opportunity—and challenge—for lenders. These loans are often too large and complex for small business loan models but too customized and data-intensive for high-volume retail approaches. Traditionally, middle market loan origination and underwriting have relied heavily on manual processes, making them time-consuming, labor-intensive, and susceptible to human error. However, artificial … Continued
Asset-based lending (ABL) has gained significant traction in recent years, not just among borrowers, but more importantly among lenders looking to adapt to a more uncertain and competitive credit environment. While direct lending once dominated the private credit space due to its simplicity and yield, many lenders are now leaning into ABL for its risk … Continued
Small business lending presents unique challenges for private lenders. From limited borrower credit histories to volatile cash flows and inconsistent financial reporting, small business loans often carry more risk than traditional commercial loans. Yet the demand for private capital in this space continues to grow as banks tighten credit standards and borrowers seek faster, more … Continued
