Lending is more than just money
The critical questions in lending are what and who are you lending to. Without knowing that, and addressing fundamental issues such as:
- What exactly is the money being used for? And is that the most efficient way to finance the opportunity?
- Who are the business’s leaders?
- What are the business’s prospects?
How can a lender assess the critical cost dimensions of the funds: risk & security?
Expect what you inspect
The current business world is infatuated with digital technology. Rightly so.
✓ Yes, it has disrupted several business models
✓ Yes, it is another communication and distribution platform
✓ Yes, technology can drive efficiency
But it is no substitute for the value delivery when inspecting the business that is borrowing the money.
Little wonder that an increasing number of crowdfunded ventures are failing. Or that many fintechs with thinner inspection processes have higher delinquency rates and hence higher lending interest rates.
New does not mean abandon the prudent
Digital-based funding can create efficiency in the lending process. Technology can make processes faster and easier. But it should come with a high degree of caution. It cannot substitute for due diligence. It is a sequential process. It is not the welcoming of a new and long relationship.
When it comes to credit, people should still do the critical thinking. Evaluating the business, its leaders, its prospects. The process is more extensive than just the money.
IA Group focusses upon the success of its customers. It uses technology to drive operational efficiency, but with 19 years of successful lending, it deals with people first and foremost.
Give us a call on 1300 729 955 or visit www.theiagroup.com.au and let’s talk about your business and your plans.