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The Loan Application Process is Broken: Insights from Levr.ai’s first 2,500 business loan applications

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As the founder of Levr.ai, my team and I have been working to make capital more accessible to small business owners for over a year now.

With over 2,500 small businesses using the Levr.ai platform, we hear the same feedback from them—why is it so hard to apply for a small business loan? This is why we’re solving this problem, and the cool thing is no one else is really doing it like Levr.ai.

At Levr.ai, we’ve dedicated ourselves to transforming the business loan landscape with an intelligent loan platform that streamlines the entire experience. This post is focused on one of the worst offenders in the business loan world, the application process.

Here’s 5 innovative strategies lenders can adopt to improve their loan application process and systems.

#1. Grouping requests and asking for the desired amount upfront

Group requests and asking for the desired amount upfront

Understanding a potential borrower’s needs and what they care about early in the process can significantly change how they approach the application. By asking for the desired loan amount upfront and grouping related requests, lenders can tailor subsequent steps, making the process more efficient and less overwhelming for applicants. This method ensures that both parties are aligned from the onset, facilitating a smoother journey.

#2. Offer value before asking for too much personal information

The saying goes: “businesses move at the speed of trust”.

Lenders can build trust early by providing potential borrowers with valuable insights into the company’s eligibility early in the process. This helps businesses understand their loan options and potential terms without immediately sharing personal or sensitive information. Using this approach fosters trust, engagement, and encourages businesses to proceed with their application.

We’ve found that showing options and early success after a short onboarding process is key to warming a business to then share more sensitive information. We pushed our marketplace forward in the process so that businesses could see early whether they would qualify or not to know how much more time to invest.

#3. Eliminate redundancies by auto-populating duplicate information

This should be a no brainer but you would be shocked at how many applications required duplicate information. Nothing frustrates applicants more than having to input the same information multiple times.

Leveraging technology to auto-populate fields with previously entered information not only saves time but also reduces errors and improves the overall user experience. At Levr.ai, we take the information that was asked in onboarding and put it into the application so when they carry on they are able to have a head start and not redo manual entry.

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#4. Make it easier for people to come back with save & return options

Life is unpredictable, and applicants may not always be able to complete their application in one session. Providing an option for them to save their application progress and return to it later offers flexibility, convenience, and significantly improves completion rates.

This approach respects the applicant’s time, thereby enhancing their experience with the lender.

#5. Simplify documentation requests and offer continuous support

Requesting documents that applicants may not immediately have, or understand, often slow down or stop the application process. Lenders should clearly communicate what documents are required and why, as well as suggesting alternatives when certain documents may not be readily available.

Additionally, providing resources to answer questions ensures applicants feel supported throughout the process, reducing drop-off rates.

If you are not doing these things, get Levr.ai to do them for you.

At Levr.ai, we’ve developed our platform with these principles at its core, ensuring a seamless, efficient, and user-friendly application process. By adopting these strategies, lenders can not only improve their application intake but also enhance their customer experience, building stronger relationships with their clients.

The application process is often the first significant interaction between a lender and a potential borrower. By making the experience as efficient and user-friendly as possible, lenders can set the stage for a positive and lasting relationship.

Levr.ai is ready to assist lenders in adopting these best practices, to revolutionize the way the industry approaches loan applications. There are over 35 million small businesses in North America depending on it.

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