“Insourcing” vs. “Outsourcing”
SBA and USDA Guaranteed Lending – should we do it ourselves or outsource it because we don’t have the expertise or capacity to handle it internally?
Many of you have asked that very same question in the past and many of you are still asking that question today. Let’s answer that question once and for all by just addressing two simple issues:
- If I can’t do it right, I should not do it at all as I will lose more than I gain; and
- If I can’t do it fairly fast and smart, should I really bother?
Some banks can address these issues easily because they have hired and trained the right folks to do this job and they do enough volume to justify the investment. In other words, they figured out how to source everything internally – “in sourcing.”
Others chose to “outsource” this specialized loan product by allowing Arkansas Capital Corporation (ACC) to underwrite, close and service their SBA and USDA guaranteed loans.
We understand that there is a choice to be made with government guaranteed lending and although government guaranteed lending is not rocket science, it is a specialized form of lending best left to those who process more than a handful of them (or fewer) each year.
We have worked with many banks across Arkansas over the past decades and have been very successful with the selling of participations in these loans back to the originating bank who continues to manage the relationship.
Speak with an Arkansas Capital Corporation loan officer today and find out how ACC can assist your financial institution with the risk mitigating benefits of government guaranteed lending through the purchase of a participation.