Overview of Products

Ned provides end-to-end lending cash flow lending infrastructure focused on small business lending. Ned’s technology came as a response to lenders wanting to diversify their financial product mix so they could serve the increasing number of small business owners that don’t have credit or collateral necessary to secure financing, but still have capital needs to start or expand their businesses. Ned works with small business lenders to launch new financial products with revenue-based repayments and to streamline cash-flow underwriting workflows. Ned can also migrate existing revenue-based loan products in repayment. 

How does the product fit into the work cycle of a CDFI?

Ned is a white label platform that brings together core capabilities of the lending process on a single end-to-end rail –  everything from origination, cash flow qualification, review and approval, legal closing, and then automated revenue-based servicing and loan tracking. Ned is often used to develop and launch new financial products. Since it focuses on cash flow-based loans, Ned is typically used in tandem with other loan software systems – users can export data from Ned to use within other loan management and accounting platforms. 

Are there other systems that your product works with? How does the product integrate with other platforms and systems? 

Silverstein noted that each CDFI’s existing technology stack is unique, so Ned aims to be flexible and to work in tandem with other systems. Ned has robust export capabilities to transfer data from the Ned platform to other platforms loan management systems and accounting systems. Silverstein also noted that Ned is typically associated with the growth and deployment of new, cash flow-based financial products so it is often set up in parallel to other systems. Ned can be useful to get revenue-based, small business loan products established, piloted, and poised for growth. 

What does onboarding generally look like? 

Ned uses a “mission ready” approach to deployment – an out of the box version allows a CDFI to be up and running within 36 hours, if needed. In that case, the CDFI can iterate the implantation and configure systems, after the financial product is up and running. In most cases, Ned staff work with CDFI staff to create a bespoke platform based on their goals, objectives, and aims. On average, Silverstein estimated that implementation for slightly larger customers takes three months on average but stressed that this is driven by the clients’ aims and ability to put their staff time to the project. To that end, the Ned team has successfully implemented with certain customers and drove first originations in less than one week’s time.  

Implementation follows a three-part process. First comes financial product design activities; a strategic phase to build an overarching cash flow lending strategy with customers and work with them to understand growth goals, and their challenges when qualifying borrowers. Then Ned staff configure their customer’s white label platform to power specific financial products underwriting criteria identified in stage one. Finally, Ned provides training and support during deployment and beyond. Ned has implemented in a range of ways, accommodating both lenders who are launching fully new financial products, as well as lenders that are already administering established products, and which might require a data migration for existing loans. 

What support and training are offered? 

Silverstein notes that “customer success is everything” and this indicates two layers of support at Ned. First, Ned consults with clients to clearly define the desired products and platform configurations needed to power successful products. Given Ned’s focus on revenue-based loan products, this includes helping clients design new products, such as defining loan terms and loan sizing in certain scenarios. Second, Ned provides training and technical support throughout the engagement with clients. This includes training, a ticketing system, and an ongoing relationship with support staff.

What makes adoption successful? What do you wish CDFIs knew before they began an implementation?

Silverstein observes that the most successful implementations tend to have strong buy-in among the CDFI’s leadership, particularly when leaders can communicate the need for growth. Ned finds that driven executives who are “willing to break the mold and pursue new avenues of opportunity” are most successful deploying the new financing products on the Ned platform. Silverstein encourages CDFIs considering cash flow lending strategies to listen to their clients (borrowers) and evaluate what they are asking for, and then build out new, flexible products to meet changing needs. 

What types of CDFIs use Ned – are there some that are a better fit? 

Ned currently focuses on small business lenders. They currently work with lenders across a range of asset and portfolio sizes. 

What integrations or reports does your tech solution allow for in terms of CDFI reporting, CDFI certification, or other data requirements?

Ned supports both a variety of out-of-box reports and also works with customers to customize their reporting field labels so data can be exported seamlessly. Since Ned is typically associated with powering revenue-based loan products, its end-to-end platform is often run in tandem with separate point solutions, or CRM or loan management systems that may accommodate CDFI Fund and other funding reporting. 

How has the CDFI industry changed in recent years and where do you think the industry is going, in terms of technology? 

Silverstein observes big shifts across the lending economy since the pandemic and says that period was a wakeup call for lending executives to reconsider their approach to technology to optimize  growth operations. Greater capital demands and urgency stressed systems and revealed vulnerabilities stress tested. Some were able to respond quickly and adapt to new programs if they had systems that could accommodate and change with greater scale and speed. 

Ned is positioning itself to help lenders transform and future proof so they can respond to the increasingly cash flow-driven economy. Silverstein observed that the traditional small business loan hasn’t changed over time, but in our current environment -inflation,  fluctuating interest rates, and different business models -the traditional small business loan may no longer meet the market’s needs. Ned is responding by helping lenders to create new products powered by lending infrastructure fit for today. Silverstein noted that he finds CDFIs are looking to improve their fundamentals with technology – i.e. how to manage originations, underwriting and day-to-day activities, etc. – and that tech solutions that can improve those systems, whether it is through more efficient platforms, better technology stacks, or automation and AI, will be the most important incremental changes for CDFIs.