Merchant lending is a simple way to increase loan volumes, create great working relationships with local businesses and help your community. We are all faced with unexpected and unavoidable expenses and financing options can be a life saver. According to Forbes, your average annual home maintenance is about 1%-4% of the purchase price, depending on the age of your home, plus unexpected expenses. This is the perfect area to implement merchant lending at your bank or credit union, help your community live better lives when they need it the most. Today, I’d like to discuss just that, an unexpected home maintenance emergency that was saved by merchant lending through a local credit union.
Jerod’s water heater was on its last leg and he knew that it needed to be updated, but since it was summer and they had a few family trips planned, he decided to put it off to later in the year. Unexpectedly, the furnace gave out. Upon consultation with his local HVAC company, he learned that replacing the furnace and water heater (that was long over-due) would cost $11,000. The replacement of these two units and the labor would inevitably cancel most of their summer trips.
But, luckily for Jerod and his family, the HVAC company was working with a local credit union that offered financing options. Jerod was given the option to finance the $11,000 for the units and services, with no interest for the first year. He was approved for the financing option in real time by the credit union, signed the agreement and was able to upload all needed documents electronically. The installation process was completed in several hours, and Jerod and his family’s summer adventures continued without interruption.
Merchant lending is a great way to offer value to your community and in result increase your monthly loan originations. Helping members of your community when they need it most will create loyal members and customers and can increase referrals. Merchant lending is one of the many functions of our digital lending solution, Application Portal.
MeridianLink Loan Origination Systems
Our loan origination software systems provides you the tools to create a robust digital lending experience, receiving, processing and approving loan applications from any digital channel. Learn more about how Application Portal helped Associated Credit Union increase their online loan bookings by 12.5% by downloading our case study.