Banks, credit unions, and other financial institutions used to cringe when they heard the terms “freelancer” or “independent contractor.” After all, those people without steady paychecks could present a huge risk

Lendsmart, an AI-driven digital lending platform, today announced its partnership with Breakout Capital, a leading small business lender that provides simple, straightforward working capital solutions to small businesses. 

You either approved a “bad” loan or failed to give a loan to a customer who turned out to be a great prospect for future business. Although the number of nonperforming loans is relatively low these days at 1.6%, lending pitfalls are not just related to non-payment or late payments.

Fueled by low mortgage interest rates, PPP loans, the rise of tech-powered real estate buying/lending, and the work-from-anywhere trend, consumers are making significant decisions about where to move, who to borrow from, and what to do with new capital.

Sutton Bank, a progressive Ohio based independent, community bank, has chosen Lendsmart, an AI-driven digital lending platform to streamline its digital lending operations and better serve its customers. 

Smaller lenders have a huge advantage over larger financial institutions. Although they may not have as much to spend on marketing, they benefit from a level of personalization and client intimacy and care that a larger financial services company may not be able to deliver.