COLUMBIA, S.C.- Innovative Business Solutions, LLC, a MBL/commercial loan CUSO, has introduced a Shared Lender Program (SLP) it said is designed to provide a cost-effective approach to developing new business for a credit union’s MBL/commercial loan program.
“In the ongoing strategy to increase membership, diversify revenue streams and loan portfolio risk, one of the biggest challenges of starting and maintaining a commercial lending program in a credit union, particular smaller credit unions, is the availability and cost of hiring a commercial lender,” said Mark Cox, President & CEO of IBS. “The Shared Lender Program gives a credit union just starting out in commercial lending, or facing replacing a commercial lender, the flexibility of having a lender employed by IBS available to work referrals from the credit union and/or actively making business development calls in their market with all of that loan production going directly to the credit union, and for a fraction of the cost of salary and benefits associated with the lender.”
According to the company, the pilot program was rolled out in March 2019 and as of June 30 had generated more than $17.2 million loans, $84,000 in fee income and 130,000 in deposits.
Brian McKay, CEO of SC Telco Federal Credit Union in Greenville, SC, and who has been a participant in SLP since its inception, added, “The Shared Lender Program has made a tremendous impact on our organization, especially during this time where non-real estate consumer credit demand is slow. We needed a jump start in our commercial portfolio and the SLP has given us exactly that. I couldn’t be happier with the way it has worked so far”.