Glossary of Terms

Auto-Detection of Best Product Fit

Definition

Auto-Detection of Best Product Fit is an AI-driven process that instantly matches small business loan applicants with the most suitable loan product based on their financial profile, eligibility criteria, and lending preferences. This intelligent system reduces manual screening efforts by automatically assessing borrower data, optimizing the loan application journey, and improving approval rates.

Why is it important to SBA Lending

For community banks and credit unions offering SBA and Small Business loans, determining the best loan product for a small business applicant is often time-consuming and complex. Each Small Business or SBA loan—whether a 7(a) loan, 504 loan, or Microloan—has unique eligibility requirements, funding limits, and usage restrictions. Lenders must manually evaluate applicant qualifications, leading to bottlenecks, inconsistent assessments, and high abandonment rates.

With auto-detection technology, lenders can:
-Instantly determine whether an applicant qualifies for an SBA loan versus alternative financing.
-Minimize applicant frustration by guiding them to the best-fit loan product upfront.
-Reduce the risk of processing ineligible applications, saving valuable underwriting time.
-Increase efficiency and throughput in the small business lending process.

This automated approach is critical in SBA lending, where applicants often struggle with documentation requirements and eligibility nuances. By improving match accuracy, lenders can enhance borrower experience and boost approval rates for underserved businesses.

What role does Parlay Play

Parlay’s AI-powered Loan Intelligence System (LIS) transforms how lenders match small businesses with financing. By integrating real-time eligibility insights, behavioral analytics, and automated decisioning, Parlay enables lenders to:

-Pre-qualify applicants with AI-driven precision: Parlay’s system automatically evaluates financial data, creditworthiness, and SBA loan requirements to present the best loan options.
-Reduce manual screening time: Lenders no longer need to sift through applications manually; Parlay’s LIS instantly pinpoints the most viable lending paths.
-Enhance borrower engagement: By providing immediate, tailored feedback on loan options, Parlay keeps applicants informed, reducing drop-off rates and increasing conversion.
-Improve capital access for underserved businesses: Parlay ensures that high-potential applicants who might traditionally be overlooked get matched with funding solutions that fit their needs.

By leveraging Auto-Detection of Best Product Fit, Parlay empowers community lenders to close more loans, serve more small businesses, and drive economic growth—all while optimizing their lending workflows.