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By Chaffey Federal Credit Union
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!
This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.
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October 13, 2008
Are you stll around?
7/26/2012 04:05 PM
I think this solution is a fantastic idea. Our OS has software and has approached us to use their "retail" module. Does anyone know if Lifestyles is doing more than software?
Great Question! Software, in itself, is not the challenging part of lifestyle lending...finding the right company with the expertise in this lending arena is. Because Lifestyle Lending Solutions is the first company of its kind, it has established a track record and important knowledge base with working side alongside medical and retail providers. Credit Unions rely on LLS' industry knowledge of indirect lifestyle lending; and medical and retail providers rely on LLS' expertise in the Credit Union industry. Lifestyle Lending Solutions offers the following services in ADDITON to a software solution:• Assist and consult in planning and development of a lifestyle lending program for the credit union.• LLS has exclusive key relationships with national partners allowing to develop a lifestyle market quickly and efficiently.• Provide full training for business services departments in sales techniques and market relations in the medical and retail field.• Provide full training, troubleshooting, and support for medical and retail Providers on the LLS network.• LLS Handles all contracts from loan notes to contracts for providers to join as well as all compliance and document preparation.• LLS places marketing material in the provider's offices with credit applications located inside with 3 ways to submit the application to lenders on the platform.• LLS provides a website (Find a Doctor/Retail) for credit unions to present to their members so they can search for doctors and retail business in their area that are partnered with their credit union.• Much more!Bottom line, LLS takes the headache out of developing a program from the start. LLS becomes a partner with the credit union to ensure that you, the credit union, can do it... do it right... and do it right now! If you would like additional information or discuss Lifestyle Lending in your are please call us toll free (866) 529-5432
Lifestyle Lending Solutions
7/26/2012 04:00 PM
Many credit unions have contacted us from this article and have had similar questions. I thought it worth mentioning all the benefits and features that come with working with Lifestyle Lending Solutions.
- Automated Underwriting
- Document prep for doctors upon approval
- Automatic Approvals
- Robust reporting suite
- Easy Fax Funding (Imaging)
- Find a Provider” Program viewable from lender’s website
- Consult credit unions on their lifestyle lending, teach and train loan officers
- Train and support all medical and retail providers
- Contract the providers, saving the credit union time and money with their own contracts
- Offer a network of credit unions and providers. If a credit union uses a software solution, they must develop their own market and that market is limited in growth when only 1 lender is available. (maybe we could highlight how our solution provides the strength of multiple lenders instead of letting them derive that 1 lender is weak. Just a thought, not a for sure)
- Provide all marketing materials to providers
- Provide our “find a doctor” (http://www.lifestylels.com/findDoctor.php ) program, which is available for credit unions to put on their website as a tool for their members to seek out doctors that offer their financing.
- We allow for patients to also apply from home through our patient portal in addition to the traditional was which the provider submits to the credit union.
- Offer direct mailing and marketing to the providers in an area on behalf of the credit union.
Simply put, we will help your credit union build a successful lifestyle lending program without the hassle of trial and error.
Let us know how we can help you!
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