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In the ever-evolving landscape of commercial finance, a new bill is being proposed in the California State Senate that has the potential to dramatically change the way commercial finance brokers operate. At the heart of this debate is the question: should commercial finance brokers be considered fiduciaries for the business owners they work with to secure financing? The bill in question would mandate that brokers have a fiduciary duty to their clients, which means they would be legally obligated to act in their client's best interests, with honesty and transparency. Proponents of the bill argue that this new fiduciary standard would ensure that brokers prioritize the needs of their clients above their own profit margins. Small business owners, who are often at a disadvantage when it comes to understanding the nuances of commercial finance, would have the added protection of knowing that their broker is working diligently on their behalf. By holding brokers to a higher standard of accountability, proponents believe that this legislation would ultimately benefit the entire commercial finance industry, fostering a more transparent and ethical environment for all parties involved. On the other hand, opponents of the bill argue that imposing a fiduciary duty on commercial finance brokers is an unnecessary burden that could potentially stifle the industry. Critics contend that the additional legal and regulatory requirements might discourage some brokers from entering the field or cause others to raise their fees in order to offset the increased risk. Furthermore, opponents argue that the free market is capable of regulating itself and that businesses can choose to work with brokers who have a reputation for honesty and integrity without the need for government intervention. A key consideration in this debate is the potential impact of the bill on the broader commercial finance industry. If the fiduciary duty requirement leads to a more ethical and transparent industry, it could ultimately benefit all stakeholders. However, if the bill results in increased costs and reduced competition among brokers, it might end up hurting the very businesses it aims to protect. Another important aspect of this debate is the potential implications for small business owners. As the backbone of the American economy, small businesses rely on access to capital to grow and thrive. If the fiduciary duty requirement leads to better financing options and reduced instances of fraud or predatory lending, it could significantly benefit small business owners. On the other hand, if the bill leads to higher fees or reduced access to financing, it could have negative consequences for this vital segment of the economy. The question of whether commercial finance brokers should be considered fiduciaries for business owners is a complex issue with strong arguments on both sides. While the proposed bill aims to provide greater protection and transparency for business owners, it is essential to consider the potential ramifications for the commercial finance industry as a whole. As this legislation continues to be debated in the California State Senate, it will be crucial for policymakers to carefully weigh the benefits and risks of imposing a fiduciary duty on commercial finance brokers in order to make an informed decision that serves the best interests of all parties involved.

The Georgia legislature recently sent SB 90 (Act) to Governor Kemp for signature. The Act aims to amend Chapter 1 of Title 10 of the Georgia Code to require commercial financing disclosures, which apply to providers involved in more than five commercial financing transactions in the state annually. Exemptions include federally insured financial institutions and transactions above specific monetary thresholds. Disclosure requirements include the total amount of funds provided, disbursed, and paid to the provider, the total dollar cost, the manner and frequency of payments, and any prepayment costs or discounts. Broker requirements prohibit advance fee assessments, false or deceptive representations, and mandate third-party payments for actual services. The Act permits the Attorney General to receive and act on complaints, and provides for monetary penalties, but no private right of action. This new law will go into place by May 8th unless the Georgia governor vetoes it. Even if the Governor does not sign the law by May 8th, it will still go into effect. The disclosure requirements are applicable to all commercial financing transactions completed on or after January 1, 2024.

DecisionLogic is a leading information services company that specializes in bank account and identity verification services for lenders and other financial institutions. Their solutions are designed to help businesses make informed decisions about lending and risk management, while also providing consumers with greater access to credit. At the heart of DecisionLogic's offerings is their Instant Account Verification (IAV) solution. This technology allows lenders and financial institutions to quickly and securely verify a consumer's bank account information, reducing the risk of fraud and improving the accuracy of lending decisions. With IAV, businesses can instantly access a consumer's account information, including account balances, transaction histories, and more. In addition to IAV, DecisionLogic also offers a suite of other solutions designed to help businesses manage risk and make informed lending decisions. These solutions include: DecisionLogic Connect: This platform allows lenders to connect with multiple financial institutions and access a wider range of account data, making it easier to verify customer information and manage risk. DecisionLogic Score: This proprietary scoring model uses bank statement data to help lenders assess credit risk and make more informed lending decisions. DecisionLogic Reports: These reports provide lenders with a comprehensive view of a consumer's financial history, including account balances, transaction histories, and more. DecisionLogic Compliance: This solution helps lenders comply with regulatory requirements, including Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. All of these solutions are designed to help businesses make more informed lending decisions while also providing consumers with greater access to credit. DecisionLogic's commitment to data quality and superior customer support has made them a trusted partner for many leading financial institutions. DecisionLogic also offers a range of identity verification services, including ID verification and document verification. These solutions help businesses confirm the identity of their customers and reduce the risk of fraud. In summary, DecisionLogic is a go-to provider of bank account and identity verification services for lenders and other financial institutions. Their innovative solutions help businesses manage risk, make more informed lending decisions, and provide consumers with greater access to credit. With a commitment to data quality and superior customer support, DecisionLogic is a trusted partner for many leading financial institutions.

Will AI Take Over Digital Marketing? Artificial intelligence (AI) has already begun transforming the digital marketing landscape, leaving many marketers wondering whether it will ultimately take over the industry entirely. In this article, we'll explore the rise of AI in digital marketing, its impact on job roles, the top AI-powered marketing tools and platforms, and the ethical considerations that come with AI-driven marketing strategies. The Rise of AI in Digital Marketing For years, marketers have relied on data-driven insights to improve their campaigns. However, with the emergence of AI, data can now be analyzed and applied at a rate and scale beyond human capacity. AI technologies have become essential tools in the marketer's arsenal, with businesses using them to optimize their customer experiences, streamline operations, and — ultimately — drive growth. Evolution of AI in Marketing AI has become increasingly prevalent in digital marketing, with the adoption rate growing rapidly in recent years. From chatbots and voice assistants to predictive analytics and personalized content, AI is being used to enhance engagement and drive conversions at every stage of the customer journey. The evolution of AI in marketing has been fueled by the need for businesses to keep up with the ever-changing digital landscape. As consumers become more tech-savvy and demand more personalized experiences, marketers have had to find ways to leverage new technologies to meet these expectations. AI has emerged as a key solution to this challenge, providing marketers with the tools they need to create more effective campaigns and improve customer engagement. Key AI Technologies in Digital Marketing Some of the key AI technologies that have made a significant impact in digital marketing include: Natural Language Processing (NLP) Machine Learning (ML) Computer Vision (CV) Robotic Process Automation (RPA) These technologies have enabled marketers to automate routine tasks, gain deeper insights into customer behavior, and design more effective, targeted campaigns. Natural Language Processing (NLP), for example, has revolutionized the way businesses interact with customers. With NLP, chatbots and voice assistants can understand and respond to customer queries in real-time, providing a more personalized and efficient experience. Machine Learning (ML) has also been a game-changer, allowing marketers to analyze vast amounts of data and identify patterns that would be impossible for humans to detect. This has led to more accurate predictions and better decision-making. Benefits of AI-Driven Marketing Strategies The benefits of using AI in marketing are numerous. By leveraging AI technologies, businesses can improve their targeting and segmentation, personalize their messaging, increase customer engagement, and optimize their advertising spend. It also enables them to make data-driven decisions, track and analyze customer behavior in real-time, and stay ahead of the curve in a constantly evolving landscape. One of the key benefits of AI-driven marketing strategies is improved targeting and segmentation. With AI, businesses can analyze customer data to identify patterns and preferences, allowing them to create more personalized campaigns that resonate with their target audience. This not only leads to higher engagement rates but also improves customer satisfaction and loyalty. AI also enables businesses to optimize their advertising spend by identifying the most effective channels and messages for reaching their target audience. By analyzing data in real-time, marketers can adjust their campaigns on the fly, ensuring they are always delivering the right message to the right audience. In conclusion, the rise of AI in digital marketing has been a game-changer for businesses. By leveraging AI technologies, marketers can create more effective campaigns, improve customer engagement, and drive growth. As AI continues to evolve, it will undoubtedly become an even more essential tool in the marketer's toolkit, helping businesses stay ahead of the curve in an increasingly competitive landscape. AI's Impact on Digital Marketing Jobs As with any disruptive technology, AI is also having a significant impact on digital marketing jobs. While it has created new job roles requiring skills in data science, analytics, and AI programming, it has also led to the displacement of traditional marketing roles. Job Displacement and Creation According to a report by Forrester, AI will eliminate 1.1 million U.S. marketing jobs by 2021. However, the same report also predicts that AI will create 700,000 new marketing jobs over the same period, with the majority of these requiring advanced technological expertise. The Changing Role of Digital Marketers With AI automating many routine tasks, the role of digital marketers is shifting towards high-level strategy and customer experience design. The days of marketers relying solely on intuition and guesswork are over – they must now understand how to leverage data and AI to drive results effectively. Essential Skills for Future Digital Marketers The rise of AI in digital marketing means that certain skills will be more important than ever before. These include: Data analysis and interpretation AI programming and implementation An understanding of machine learning algorithms Creative problem-solving Those who can adapt their competencies and keep up with technological advancements will be better positioned to succeed in the field. AI-Powered Marketing Tools and Platforms AI-Driven Content Creation Tools AI is being used to create content using natural language generation (NLG) tools, which can generate news articles, social media posts, and other written content. This technology has opened up new avenues for content creation while reducing the time and effort required. AI-Based Customer Segmentation and Targeting By using machine learning algorithms, AI can analyze vast amounts of customer data, identify patterns and trends, and segment audiences based on their behavior, interests, and preferences. This enables marketers to create highly targeted campaigns that resonate with their intended audience. AI-Powered Analytics and Insights AI-based analytics tools can process data much faster and more accurately than humans, providing marketers with deep insights into user behavior and campaign efficacy. AI can track and analyze interactions across multiple channels, providing valuable insights that can help optimize campaigns and drive revenue. Ethical Considerations in AI-Driven Marketing While AI holds great promise for improving the customer experience, it also raises ethical concerns that cannot be ignored. Data Privacy and Security Marketers must balance their desire for data with customers' right to privacy. They must ensure that they are transparent in their data collection methods, obtain necessary consent, and comply with local and international data protection laws. Bias and Fairness in AI Algorithms AI algorithms are only as good as the data they receive. Bias in data can lead to skewed results, unfair treatment, and even discrimination. As such, it is crucial for businesses to regularly audit their AI systems to ensure they are as fair and inclusive as possible. The Role of Human Oversight and Responsibility AI may be powerful, but it is not infallible. Businesses must take responsibility for the actions and outcomes of their AI-powered marketing strategies. Human oversight is necessary to ensure that AI algorithms are producing ethical and effective results that align with the company's values and objectives. Conclusion AI's influence on digital marketing is undeniably significant and rapidly evolving. While it may seem daunting, with proper understanding and use, it can enable businesses to create exceptional customer experiences and drive revenue. The key is to approach AI as a tool that can enhance your marketing efforts and not as a replacement for human input and creativity.

Hey, hey, hey! Are you tired of juggling your personal and business phone calls? Look no further than Grasshopper, the ultimate phone software company for businesses. Grasshopper adds a business number and virtual phone system to personal phones, keeps personal and business calls separate, and allows you to make and receive calls and texts from anywhere with apps for desktop and mobile. So let's jump in and have some fun exploring Grasshopper's features, pros and cons, and pricing. Features Say goodbye to the days of mixing up your personal and business calls because Grasshopper has got you covered! You can use your personal phone number for personal calls and a business number for business calls. Keep things separate and professional, it's a win-win! Another amazing feature of Grasshopper is their virtual phone system. No need for expensive hardware, because you can have a professional phone system right at your fingertips! With features like voicemail, call forwarding, and call screening, you can always be on top of your business game. Customize your greetings for different times of the day and you're sure to impress your customers. Grasshopper is all about flexibility, and their apps for desktop and mobile make it easier than ever to make and receive calls and texts from anywhere. No more missed calls or texts when you're out and about. With Grasshopper, you can take your business with you wherever you go! Pros and Cons Pros: Personal and business calls are separated Virtual phone system to make you look like a pro Customizable greetings to impress your customers Apps for desktop and mobile that keep you connected on the go Cons: Pricing is a little higher than some competitors International calling options are a little limited Pricing Alright, now let's talk pricing. Grasshopper has three plans: Solo, Partner, and Small Business. The Solo plan costs $28 per month and includes one phone number and three extensions. The Partner plan costs $46 per month and includes three phone numbers and six extensions. And finally, the Small Business plan costs $80 per month and includes five phone numbers and unlimited extensions. Choose the plan that works best for you and let's get this party started! Conclusion Well, there you have it, folks! Grasshopper is the ultimate phone software for businesses of all shapes and sizes. Whether you're a one-person show or have a whole team of employees, Grasshopper's features will make communication easier and more professional. And although their pricing is a little higher compared to some competitors and international calling options are a little limited, the benefits of using Grasshopper will make you jump for joy! So why not give it a try and start jumping into success today?

New Category in our Forum! This category is for exclusive content Only for Site Members. To kick things off in this category we analyze the business lending industry using the Porter's Five Forces model. Analyzing Small Business Lending Using Porter's Five Forces Porter's Five Forces is a framework developed by Michael E. Porter to analyze the competitive landscape of an industry. The model identifies five undeniable forces that determine the overall competitive intensity and attractiveness of a market. Porter's Five Forces Model helps managers and analysts understand the competitive landscape that a company faces and to understand how a company is positioned within it. These forces are: Rivalry Among Existing Competitors Threat of New Entrants Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitute Products or Services Why Create This Analysis Creating a Porter's Five Forces analysis is beneficial for companies as it helps them understand the competitive dynamics within their industry. By evaluating these forces, companies can identify their strengths and weaknesses, uncover potential threats and opportunities, and develop effective strategies to gain a competitive edge. This analysis also assists companies in making informed decisions about market entry, product diversification, and resource allocation, ultimately contributing to their long-term success. To read the FULL analysis, you must be logged in as a member and can view it in our Forum->Site Members Only category or Click below:

Junk fees in commercial lending are the new target for lawmakers around the country. The topic is being discussed and negotiated in the California legislature as they move forward with other bills that would put more regulation in commercial lending. At issue are fees that do not have a 'clear service' behind them. So origination fees would be ok, and maybe things like a credit pull, but when you get into fees for processing payments, charging for statements that reflect balances due or interest cost, setting up the ACH, underwriting, professional service fees(maybe with a maximum), then those might be outlawed in addition to any others that are prevalent in the industry. This will start in states like California but is likely to follow in others given the support it has from people on both sides of the aisle. They agree that steps do need to be taken to reduce the number of junk fees charged to the merchant, often unknowingly until after the funds have been disbursed. A push against junk fees has already been going on from the CFPB and FTC in regard to the consumer side of things with banks and other financial companies. Now commercial lending will be roped in.

As a business loan broker, it is essential to understand the primary financial products and solutions available to your clients. One such product, equipment financing, can be a valuable option for businesses seeking to acquire or upgrade their machinery, vehicles, or technology. In this article, we will explore the benefits of equipment financing, identifying potential clients, and crafting a compelling sales pitch for equipment financing. Understanding equipment financing and its benefits Equipment financing is a type of business loan which allows companies to acquire or upgrade equipment by spreading out the payments over a predetermined duration. This financing enables businesses to purchase the assets they need without having to pay a sizeable upfront cost. Payments are usually made on a monthly basis, and the interest rates and terms of an equipment loan can vary based on factors such as credit history, loan duration, and the cost of the equipment. Advantages of equipment financing for businesses There are several benefits to equipment financing, making it an attractive option for businesses. Firstly, equipment financing allows companies to conserve capital and improve cash flow by spreading out payments over a more extended period. This arrangement leaves more cash on hand for other investments or unexpected expenses. Additionally, equipment financing often comes with flexible repayment terms, which can be tailored to suit the specific needs and financial capabilities of a business. Another significant advantage of equipment financing is that it can lead to tax benefits. In many jurisdictions, interest payments on equipment loans can be deducted as a business expense. Furthermore, in some cases, businesses may be eligible for depreciation deductions on equipment purchased through financing. These potential tax benefits can help reduce a company's overall tax liability and improve their bottom line. Equipment financing also allows businesses to stay up-to-date with the latest technology and equipment. As technology advances, equipment becomes obsolete faster than ever before. By financing equipment, companies can upgrade and replace their equipment more frequently without having to pay the full cost upfront. This can give businesses a competitive edge by allowing them to stay ahead of the curve and remain at the forefront of their industry. How equipment financing differs from traditional loans While there are similarities between equipment financing and traditional business loans, there are also a few key differences. One of the main distinctions is that the equipment being purchased serves as collateral for the loan. This arrangement often results in lower interest rates, as the lender takes on less risk. Another notable difference is that equipment financing is typically more flexible than traditional lending, with customized repayment structures that can cater to a business's individual needs. Traditional loans often come with rigid repayment terms, which can be difficult for businesses to manage. Overall, equipment financing can be an excellent option for businesses looking to acquire or upgrade equipment. With its flexible repayment terms, potential tax benefits, and the ability to stay up-to-date with the latest technology, equipment financing can help businesses conserve capital, improve cash flow, and remain competitive in their industry. Identifying potential clients for equipment financing Target industries and businesses When it comes to equipment financing, certain industries and business types may be more likely to utilize these services. Industries that rely heavily on equipment, such as construction, manufacturing, transportation, and agriculture, are prime candidates for equipment financing. Within these industries, businesses that require frequent equipment upgrades or are experiencing rapid growth may be particularly interested in seeking equipment financing. For instance, in the construction industry, companies need to have heavy machinery and equipment to carry out their operations. However, purchasing new equipment can be a significant financial burden, especially for small businesses. In such cases, equipment financing can be a viable option to acquire the necessary equipment and manage cash flow. In the manufacturing industry, equipment financing can help companies acquire new technology and machinery to streamline their production processes and improve efficiency. This can lead to increased productivity and profitability, making it a worthwhile investment. Similarly, in the transportation industry, equipment financing can help businesses acquire new vehicles or upgrade their existing fleet to keep up with the competition. Finally, in the agriculture industry, equipment financing can help farmers acquire new machinery and equipment to increase their crop yields and improve their bottom line. Recognizing the signs of a business in need of equipment financing There are several signs that a business may benefit from equipment financing. These include aging equipment or machinery, increased maintenance and repair costs, or a sudden influx of new business that requires an immediate expansion of their equipment base. Identifying these indicators can help you target potential clients more effectively, making your outreach and marketing efforts more fruitful. For example, if you notice that a construction company has been repairing their equipment more frequently, it may be a sign that they need to upgrade their machinery. By reaching out to them with an equipment financing proposal, you can help them acquire new equipment and reduce their repair costs in the long run. Similarly, if a transportation company has recently won a new contract that requires them to expand their fleet, they may need financing to acquire new vehicles quickly. By recognizing this need and offering them a financing solution, you can help them meet their business goals and establish a long-term relationship. Approaching potential clients and building trust When approaching prospective clients about equipment financing, it is essential to build trust by demonstrating your industry knowledge and highlighting the benefits of this financing option. Be respectful and genuinely interested in their businesses, and always prioritize their goals and requirements. Tailor your explanations and proposals to address clients' unique challenges and concerns, making it clear that you understand their specific equipment needs and financial position. For instance, if you are approaching a construction company, you can highlight how equipment financing can help them acquire new machinery without affecting their cash flow. You can also explain how this financing option can help them stay competitive and complete projects on time and within budget. Similarly, if you are approaching a manufacturing company, you can highlight how equipment financing can help them invest in new technology and improve their production processes. This can lead to increased efficiency, reduced downtime, and improved product quality, all of which can help them stay ahead of the competition. By taking the time to understand your potential clients' needs and concerns and offering them a customized financing solution, you can build trust and establish a long-term relationship that benefits both parties. Crafting a compelling sales pitch for equipment financing Highlighting the benefits and flexibility of equipment financing In your sales pitch, emphasize the various advantages of equipment financing, such as preservation of capital, improved cash flow, and potential tax benefits. Be sure to highlight the flexibility and customization options available, and how you can work closely with them to tailor the financing terms to suit their individual needs. Addressing common concerns and objections During your pitch, it is essential to address any common concerns or objections your clients may have. Be prepared to discuss topics such as interest rates, loan duration and structure, and your ability to negotiate favorable terms on their behalf. Demonstrating your expertise and understanding of these issues will help to alleviate clients' concerns and show them that working with a business loan broker offers numerous benefits. Using case studies and testimonials to showcase success Incorporate testimonials and case studies of businesses you've helped secure equipment financing into your pitch. These real-world examples will help to demonstrate the value of your services and give potential clients a better sense of the impact that equipment financing can have on their business operations. By showcasing these successful outcomes, you can make a stronger case for why companies should work with you to obtain equipment financing. In summary, selling equipment financing as a business loan broker involves a deep understanding of the product, the development of essential skills, and the formation of strong relationships with clients and industry professionals. By focusing on these areas, you can become a successful business loan broker and help your clients acquire the equipment they need to grow and thrive.

Welcome to our latest interview, featuring Frank Ebanks, CEO of Spartan Capital, a prominent merchant cash advance/revenue-based funder. In this video, we discuss Frank's journey and how he founded Spartan Capital, a company that has made a significant leap in recent years. We also touch upon important topics such as the banking crisis, MCA default rates, and new regulations and laws that are impacting the industry. Additionally, Frank provides tips to help brokers in their operations and shares his outlook for the foreseeable future of the industry. Frank's extensive knowledge and experience offer invaluable insights for anyone looking to succeed in the industry. You can reach Frank Ebanks at: 973.750.0101 frank@spartancapitalgroup.com Spartan Capital

In the treacherous waters of the business loan industry, there sailed a flotilla of small business owners, each captaining their own vessel, seeking the elusive treasure of a business loan approval. With the tenacity of Ahab and the naivete of Sinbad, they ventured into the stormy seas, their sights set on the horizon where financial success awaited. But, alas, their journey would be fraught with danger and deceit, as the pirates of the loan brokering industry lay in wait, ready to prey upon these innocent sailors. Our brave entrepreneurs first encountered the perilous straits of the "Paperwork Archipelago," a vast expanse of bureaucracy where their vessels would run aground amidst the whirlpools of endless forms and documentation. This inhospitable region seemed to feed upon their frustration and fatigue, as the ghostly specter of rejected applications floated on the horizon, always just out of reach. It wasn't long before these mariners attracted the attention of the most ruthless and cunning loan brokers, who operated under the Jolly Roger of false promises and sky-high interest rates. These swashbuckling buccaneers would accost the weary entrepreneurs, offering the treasure they sought but with strings attached. "Avast, matey!" bellowed one pirate broker, a predatory gleam in his eye. "Feast your eyes upon me incredible low rates! It be a small price to pay for your dream! Just sign here in blood, and don't ye be mindin' the fine print!" Blinded by the siren call of their dreams and the tantalizing vision of loan approvals, the sailors couldn't resist the temptation, and one by one, they fell victim to the pirate brokers' deceitful schemes. With each misstep, they found themselves sinking deeper into the abyss of debt, their ships weighed down by crushing interest rates. As our heroes navigated the treacherous sea, they encountered the fabled "Loan Kraken" - a gargantuan, many-tentacled monster that reached out to entangle the entrepreneurs with its myriad of hidden fees and high factor rates. Its sinister laugh echoed across the waters, as it squeezed the life from the small businesses in its relentless grasp. Then there were the notorious "Loan Sirens," who lured the unsuspecting sailors with their bewitching songs of easy approvals and too-good-to-be-true terms. Once entranced, these hapless seafarers were dashed upon the rocky shores of debt, their hopes and dreams shattered against the unforgiving cliffs. Yet in the darkest corners of the loan brokering seas, there whispered a legend of a mythical figure - the "Benevolent Broker." This elusive mariner was said to possess the power to guide the lost entrepreneurs through the treacherous waters, shielding them from the predations of pirates and the grasp of the Loan Kraken alike. But sightings of the Benevolent Broker were rare, their existence a source of fervent debate among the desperate sailors. And so, our intrepid entrepreneurs found themselves adrift in the tempestuous waters of small business loan brokering, tossed about by the high waves of unscrupulous lenders and the gusts of outrageous interest rates. They clung to the hope that, someday, the Benevolent Broker might emerge from the mists, their compass pointing true north towards a fair and just lending landscape. But until that fabled day arrived, the brave sailors would continue to weather the storm, navigating the treacherous waters of the business loan industry, driven by the unwavering desire to find success in the uncharted seas of entrepreneurship.

Tracking a Net Promoter Score is an established method for uncovering the key to customer loyalty. It's something I used over 15 years ago working for a franchise system that after implementation more than doubled its number of units in a short period of time. With technology and so many different platforms available to gain customer feedback, the NPS can be overlooked nowadays. However, a key difference is that this is an internal system that is counted on to be reliable so that it can lead to improvements in the business. Let's revisit what a Net Promoter Score is and why it can be useful for any company regardless of size or industry. A Net Promoter Score (NPS) is a customer loyalty metric used by businesses to gauge their customers' overall satisfaction and predict the likelihood of their recommending the company's products or services to others. NPS has been a popular tool for companies of all sizes, as it provides a simple, easy-to-understand metric that can be used to make strategic decisions and drive improvements in customer experience. NPS is beneficial to companies for several reasons: Simple and easy to understand: NPS reduces complex customer feedback data into a single, straightforward number. Benchmarking: Companies can compare their NPS to industry averages or competitors to understand their relative performance. Predictive of growth: A high NPS often correlates with increased customer loyalty, positive word-of-mouth, and business growth. Identifies areas for improvement: Analyzing NPS data helps companies identify areas where they can enhance customer satisfaction, leading to increased retention and new customer acquisition. To implement a Net Promoter Score system leveraging digital capabilities, follow these steps: Develop a survey: Create a short survey that includes the NPS question: "On a scale of 0-10, how likely are you to recommend our company/product/service to a friend or colleague?" (Optionally, add one or two open-ended questions to gather qualitative feedback.) Select a digital platform: Choose an online survey tool or customer feedback management software that offers NPS functionality. Some popular options include SurveyMonkey, Qualtrics, and Delighted. Distribute the survey: Share the survey with your customers through various digital channels, such as email, social media, or in-app notifications. Make sure to target a representative sample of your customer base to obtain accurate results. Analyze the data: Calculate your NPS by subtracting the percentage of detractors (customers who rate 0-6) from the percentage of promoters (customers who rate 9-10). Passives (customers who rate 7-8) do not directly affect the NPS score. NPS can range from -100 (all detractors) to +100 (all promoters). Determining a good NPS score can vary significantly across industries; however, a score above 0 generally indicates that more people are likely to recommend your company. Familiarizing yourself with industry-specific NPS benchmarks is crucial for long-term success. Segment the data: Segment your NPS data by factors such as customer demographics, purchase history, or product usage to identify trends and areas for improvement. Close the loop: Follow up with customers who provided feedback, especially detractors, to understand the reasons behind their ratings and address their concerns. This will demonstrate your commitment to customer satisfaction and can potentially turn detractors into promoters. Monitor and improve: Continuously monitor your NPS and use the insights gained to drive improvements in your products or services. Regularly reassess your NPS to track progress and adjust your strategies as needed. By implementing a Net Promoter Score system using digital tools, businesses can gain valuable insights into customer satisfaction and loyalty, enabling them to make data-driven decisions that lead to growth and success.

The Consumer Financial Protection Bureau (CFPB) has finalized a rule to increase transparency in small business lending, promote economic development, and combat unlawful discrimination. Lenders will collect and report information on small business credit applications, including demographic data, lending decisions, and the price of credit. The rule aims to benefit small businesses, family farms, financial institutions, and the broader economy. Key points of the new rule include: Providing a comprehensive view of small business lending by covering lenders making over 100 covered small business loans per year, accounting for more than 95% of small business loans by banks and credit unions. Covering diverse forms of credit by all types of lenders, including closed-end loans, lines of credit, business credit cards, online credit products, and merchant cash advances by banks, credit unions, and other lenders. Using straightforward definitions and streamlined forms, defining a small business as one with gross revenue under $5 million in its last fiscal year and including a streamlined sample form for lenders to collect demographic data. The CFPB has planned for a phased implementation of the rule: Lenders originating at least 2,500 small business loans annually must collect data starting October 1, 2024. Lenders originating at least 500 loans annually must collect data starting April 1, 2025. Lenders originating at least 100 loans annually must collect data starting January 1, 2026. The rule allows for the use of new digital tools developed by industry and technology partners, including Application Programming Interfaces in an open-source environment to spur the development of accurate and efficient data reporting tools. The CFPB also plans to issue a supplementary proposal providing additional implementation time for small lenders with strong records of service. https://www.consumerfinance.gov/about-us/newsroom/cfpb-finalizes-rule-to-create-a-new-data-set-on-small-business-lending-in-america/