Glossary of Terms

Analytics + Benchmarks

Definition

In small business lending, Analytics + Benchmarks refer to the use of data-driven insights and industry comparisons to assess loan applicants, optimize underwriting, and improve approval rates. These tools leverage historical trends, real-time financial data, and AI-driven analytics to help lenders make smarter, risk-adjusted lending decisions.

Benchmarks allow lenders to compare an applicant’s financial health, cash flow, and creditworthiness against similar businesses within their industry, region, or revenue tier. By doing so, lenders can quickly determine whether an applicant meets SBA loan requirements, where they stand compared to peers, and how likely they are to succeed.

Why is  it important to SBA Lending

Small Business Administration (SBA) loans require extensive financial assessments, making data accuracy and industry comparisons critical. Traditional lending models often overlook valuable business indicators, leading to higher rejection rates and longer processing times.

Analytics + Benchmarks solve these challenges by:
-Enhancing loan decisioning: Lenders can assess applicant strength based on real-world business performance, not just credit scores.
-Reducing default risk: AI-driven benchmarking helps predict borrower success and prevent risky loans.
-Increasing approval rates: Identifying underserved, creditworthy applicants based on business viability rather than outdated models.
-Speeding up SBA loan processing: Automated analytics reduce manual underwriting efforts and improve efficiency.

What  role does Parlay Play

Parlay leverages AI-powered Analytics + Benchmarks to help community banks and credit unions optimize small business lending. By integrating real-time financial metrics, third-party data sources, and SBA eligibility requirements, Parlay provides lenders with:

-AI-Driven credit scoring: Goes beyond traditional credit scores to evaluate real-time cash flow, revenue trends, and industry benchmarks.
-Behavioral analytics: Identifies borrower drop-off points and engagement patterns to improve loan completion rates.
-Risk-adjusted lending strategies: Enables lenders to confidently expand into small-dollar loans while managing risk effectively.
-Performance Insights: Helps financial institutions refine their lending strategies based on borrower outcomes and market trends.

Analytics + Benchmarks empower lenders to make more informed, efficient, and inclusive lending decisions. With Parlay’s AI-driven approach, banks and credit unions can increase SBA loan approvals, reduce risk, and streamline underwriting—driving better outcomes for both lenders and small businesses.