As many credit unions look at their mortgage, construction and auto loans; many may be looking for a fresh new idea that promotes growth for new membership as well as further establishes the credit union in the local community. Surprisingly, this new way of lending is found at your doctor’s office. Lifestyle lending is gaining momentum with credit unions seeking innovation and growth in their loan portfolios. Medical and retail financing has evolved to cover a variety of non-traditional loans that can enhance a member’s lifestyle. These loans can be financing for dental, chiropractic, cosmetic, hearing, vision, medical spas and many other procedures, elective surgeries, and uninsured medical expenses. They also cover many big ticket and unique retail services such as furniture, scooters, hot-tubs, mattresses and spas, vehicle conversion kits and so much more. Lifestyle loans are consistent with the origins and philosophy of credit unions – they meet the needs of members at different stages of their lives.
There are many benefits to look at when investigating lifestyle lending. The first is the basic principle of indirect lending. By extending the services of the credit unions to medical and retail providers that members shop in daily, a credit union grows its brand recognition with not only its current members, but advertises to new potential members that the credit union is truly there to offer solutions for their daily lives and not just auto loans or CDs. Secondly, lifestyle lending is a high yield loan product. On average, credit unions charge rates ranging from 10%-17.99% with no reserve or flats paid to the medical or retail providers. Currently, patients are given financing options at their doctors for several credit card companies with high cost to both patient and doctor with harsh penalties and high variable interest rates. Another benefit to the credit union is the potential cross sell to the provider for business lending and encourages doctors to bring their accounts into the credit union.
The Utah credit unions are one such market to look at when viewing Lifestyle Lending’s potential. The Utah market is comprised of 12 credit unions and over 200 medical and retail providers in the state, with approximately 20 new providers joining monthly. The University Of Utah Division Of Plastic Surgery’s director, Bonnie Canning said, “What I like best about working with the credit unions is the service my staff, as well as my patients receives. We have offered other financing in the past, but now use the credit unions exclusively. The credit unions have saved us a lot of money and improved our service and quality of financing; it’s a win/win for all.”
Bringing the credit unions and providers together is the job of Lifestyle Lending Solutions (www.lifestyleLS.com ). Lifestyle Lending Solutions (LLS) offers a turnkey solution for credit unions nationwide wanting to offer lifestyle lending. LLS provides comprehensive yet easy to use software allowing for online applications for the medical and retail providers.
Lenders utilizing the system use their own underwriting guidelines and policies that are easily plugged into the system for automated underwriting, reporting and funding. Lifestyle lending integrates with most host/core systems making it even easier to train and grow lifestyle lending.
For more information on Lifestyle lending Solutions please Contact LLS . A new way of lending is here!
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