Glossary of Terms

360° Enriched Applicant Profiles

Definition

Comprehensive borrower profiles that integrate financial, behavioral, and alternative data sources to create a complete picture of a small business’s creditworthiness. These profiles go beyond traditional credit reports by incorporating real-time insights from bank transactions, business cash flow, industry-specific benchmarks, and regulatory compliance checks.

By leveraging artificial intelligence (AI) and machine learning (ML), 360° Enriched Applicant Profiles dynamically update, offering lenders a holistic view of an applicant’s financial health, business viability, and lending risk.

Why is it important to SBA Lending

Small Business Administration (SBA) loans are vital for small businesses seeking affordable financing. However, accessing these loans is often challenging due to strict eligibility requirements, extensive documentation, and high underwriting costs.

360° Enriched Applicant Profiles help overcome these barriers by:
-Reducing documentation burden: Automating data collection from multiple sources minimizes back-and-forth between applicants and lenders.
-Improving loan approval rates: By factoring in alternative data, lenders can better assess risk and approve more eligible borrowers who might be overlooked by traditional credit scoring.
-Accelerating SBA loan processing: AI-driven insights streamline underwriting, reducing manual work and ensuring a faster, more efficient loan approval process.
-Enhancing risk mitigation: Real-time monitoring of business performance allows lenders to proactively manage risk and prevent loan defaults.

What role does Parlay Play

Parlay, an AI-powered Loan Intelligence System (LIS), transforms the small business lending landscape by integrating 360° Enriched Applicant Profiles into its decisioning process. Unlike traditional Loan Origination Systems (LOS), Parlay leverages real-time data and predictive analytics to enhance applicant evaluations.

Parlay optimizes 360° Enriched Applicant Profiles with:
-Automated data enrichment: Parlay aggregates credit data, tax records, cash flow analytics, and compliance checks, reducing lender workload.
-AI-Driven applicant readiness: Identifies gaps in borrower qualifications and provides tailored recommendations to improve loan eligibility.
-Dynamic risk scoring: Uses machine learning to predict applicant success, enabling lenders to approve more loans with confidence.
Pipeline Optimization: Increases the number of eligible applicants while maintaining compliance and minimizing risk exposure.

360° Enriched Applicant Profiles are a game-changer in SBA lending, helping community banks and credit unions increase loan approvals while reducing risk and inefficiencies. By integrating these profiles into Parlay’s Loan Intelligence System, lenders can make smarter, faster, and more inclusive lending decisions- unlocking access to capital for more small businesses.