PayNet Automates SMB-To-Lender Data Sharing

Credit and data analytics firm PayNet is launching an automated reporting solution for lenders to more seamlessly collect and analyze financial information on small business (SMB) borrowers.

PayNet announced Thursday (June 27) in a press release that it is rolling out its PayNet Financial Statement Report (FSR), a solution for lenders to automatically generate a report of financial data from small business loan applicants to more efficiently assess creditworthiness. According to PayNet, the FSR addresses the problem of banks and other lenders that have traditionally had to manually collect financial data and create their own financial reports.

The reporting solution integrates with the majority of SMB accounting platforms, PayNet said, including QuickBooks and Microsoft Solutions, enabling borrowers to securely and quickly share financial data with lenders, and accelerate banks’ underwriting and credit decision-making process. On average, the company said, credit underwriting can take as long as 30 days to complete.

Smaller value small business loans below $500,000 are particularly prone to unreliable data, the company added.

“Lenders lose hours manually tracking down and reviewing financial statement data,” said PayNet Senior Vice President and General Manager William Phelan in a statement. “This results in delays, a poor customer experience and inefficiencies that negatively impact the bottom lines of lenders and borrowers. With the FSR, a single-click saves lenders time and gets much needed capital to small businesses faster, while providing a clearer picture of risk.”

PayNet also pointed to the ability for the automated solution to reduce the risk of errors and bias by standardizing the data collected. Information within the Financial Statement Report is encrypted, with borrower consent necessary to generate the report.

“We are committed to developing new digital lending solutions that close the small business credit gap,” Phelan added. “Main Street companies are starving for capital. FSR opens the door for more applicants and more profitable loans, a win-win for lenders and local businesses.”