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Q. What kind of lenders can benefit from the Lendgistics program?
A. Literally any lender that is looking to increase their volume of secured consumer vehicle loans while decreasing fixed overhead will benefit.  Lenders run the gamut of small independent banks, S&L's and finance companies, to larger regional and national lenders, credit unions and CUSO's, to working with Wall Street firms in packaging and pooling loans for sale and distribution on secondary markets.

Q. So any lender can participate, but what's different about Lendgistics from other programs?
A.  The Software and systems utilized by Lendgistics were designed through a true collaboration with dealers and lenders and are unlike anything in the marketplace today. In fact, from the inception of the program and still today, we challenge ourselves to make certain that the unique services we provide are truly different and needed by both the lender and dealer sides. We created the program as an alternative to, not a competing program in the marketplace which means the systems and platform are different. And something different in the marketplace is what is needed!

Major differences include: 

  • Multi-tier, iterative decisioning model that significantly reduces pending or manual loan decisioning.
  • The ability to match existing customers/members and clients to a lender database to capture direct loans
  • Totally customizable loan decisioning criteria with nearly unlimited combinations of decisioning and pricing combinations
  • Loan decisioning engine automates a high percentage of manually reviewed and approved loans - cutting overhead and expediting the loan decisioning process, resulting in lower costs and
  • high approval and funding ratios with confidence
  • The ability to outsource the Deal Rep and most back office functions to eliminate fixed overhead
  • The ability for entities including lenders to own a protected territory related to use and distribution of the software in geographic regions (SEE CUSO Opportunities in the CU Lending Edge web-site)

Q. Do I get the impression that the Lendgistics system can replace or eliminate my current loan decisioning engine?
A. Yes. You still need your core processor of course, but the Lendgistics system can easily become your front-end automated decision engine (or filter) for all of your consumer loans, not just indirect and direct auto loans. We can build any product and any product decisioning criteria into the system, so you can use the system for all of your automated loan decision needs. Whether the systems are utilized solely as an indirect and direct automobile lending program, or internally as an automated loan decision engine for staff, or even as a completely web-based automated consumer loan platform, the Lendsys, LLC engine utilized by Lendgistics is the most powerful and open automated loan decision engine available in the lending marketplace today.

Q. As an experienced lender I've been involved in indirect lending in the past and it was a nightmare. Why would your program work for indirect when others haven't?
Q. I'm not experienced with indirect lending and have heard and seen the problems encountered by my colleagues and peers, how does your system avoid the pitfalls?
A. Whether you are doing direct or indirect lending today, have done it in the past and stopped, or have never been involved in indirect due to the inherent problems and negatives of current and past programs, you should consider utilizing the Lendgistics, LLC lending and processing platform for the following reasons:

Total Customization - The program allows lenders to totally customize their loan decisioning criteria and pricing  based on application and credit report data to their specific underwriting standards. Lenders never approve a loan they don't want - and they don't spend any manual underwriting or decisioning time on loans that they haven't already approved

More Funded Loans  -

  • Customized decisioning criteria means  that as a lender, you only approve loans that you want, which means you are only focused on approved loans that have a good chance of validating and funding.
  • Automate More Loan Decisions - Our iterative, multi-solution loan decisioning allows you to create multiple "what if" scenarios in an automated loan decisioning environment, eliminate manual underwriting, and stay consistent 24/7, to your exact standards on every loan.
  • Eliminate Manual Decisioning Exceptions - No more exceptions means you end up with a cleaner and more profitable loan portfolio. Specific permission based limits and roles can be created at entity and individual staff levels.
  • Validation on Every Loan - Our sophisticated and thorough back-office processes are designed specifically to validate details and minimize fraud on each and every file.
  • Direct and Indirect loan Capture - Lenders are able to capture direct customer/member loans as well as indirect (non-customer/member) loans - What lender doesn't  want repeat business on their terms and at their pricing?
  • We Handle the Front and Back Office - Lenders don't need to house back-office staff to handle increased volume, or dealer representatives to add dealers to the system and create application flow. We do it all so you save a ton of money vs. being on other programs.
  • Several Pricing and Delivery Models - Lenders can pick and choose the pricing and delivery model that best suits their needs and operations. From Fully processed and funded to just passing applications from the system to your front-end engine, there's a service level and price for everyone.

The benefits of the system for Lenders are almost unlimited . . .
Q. Don't the dealers and large lenders pretty much control who gets the loan volume?
A.This may have been true in the past, and it's certainly true with other lending systems, but not within our aggregated lender system. While lenders can decidedly "go it alone" the aggregator platform provides several major structural and conceptual differences from all other indirect programs in existence today. For the aggregated lenders the program is geared primarily to identify and send each loan application to the lender with the specific criteria to approve the loan. Essentially the system shops the deal for the dealer, removing control from the dealer as to where the loan is sent. In the CU LENDING EDGE program dealers and large lenders can't and don't control the loan submission process.

Q. What do you mean, dealers and large lenders can't control the system?
A.In the aggregated lender program Dealers submit loans directly to Lendgistics or CULE via the interfaces with RouteOne or DealerTrack. The engine searches the extensive lender database and first looks for a customer/MemberMatch to determine which lender the loan belongs to. Regardless of which lender approves the loan, our objective is to have enough lenders and the right mix of lenders to consistently shoot back an approved status to the dealer. This is drastically different than other systems that encourage each lender to hire and maintain dealer representatives that then make individual and multiple calls on dealers to attempt to get dealers to send them, not you, the loan application. Since dealers don't get to choose which specific lender in the system to send the loan to, they do not control the system. Large or small lenders are all treated equally in terms of loan distribution, however, lenders with looser criteria obviously get more approvals. But remember, regardless of your criteria, if the loan application coming into the system is your customer or member, you get first shot a decisioning that loan! Only when you don't approve your own customer or member will the application continue through the system to look for an approval from another lender in the system. In the meantime, you get all your customers or members first. This is a great client/product retention tool, worth the money just for this aspect of the program alone.

Q. What about this "Next-In-Line" concept?" Can I lose an actual customer/member loan as a result of this?
A. In short, yes. But remember, everyone takes their turn with multiple customer/member matches. The "Next-in-Line" algorithm may determine that it is not your turn to have the first crack at the loan decision, but this can only happen when a customer/member belongs to multiple lenders in the system. After each decision, the "Next-in-Line" order shifts and you get that much closer to being first-in-line the next time multiple MemberMatches take place in the system. Essentially, the "Next-in-Line" process assures every system lender of an equal share of all existing clients (as well as potential new clients). lAll loans are portioned out based on fair, unbiased, and equitable mathematical formulas.

Q. What are the costs?
A. Call us for specific pricing in your area and we can explain and be specific regarding the different service levels and geographic regions. Pricing may vary based on the provider pricing schedule in your individual marketplace but pricing for fully processed and validated loans is typically far less than most institutions spend to internally and manually process and fund. Custom pricing  varies based on your specifications and requested service levels.

Q. Do you have interfaces with any of the large loan application acquisition services?
A. Yes. We have built an integrated and automated interface built with RouteOne and DealerTrack.  This clearly benefits the RouteOne and DealerTrack dealers, and lenders benefit by making virtually every franchise dealer in the country in every market in the country a potential dealer for our system. .

Q. Does your system run my credit report and lender subscriber number?
A. Yes. When you come in the system as a lender we work with the credit bureau to assign as separate subscriber code to all CULE decisioned loans. Each lender is billed directly for all of the credit reports pulled on their behalf each month and they can use the data to track approval and funding ratios and to create other important and useful reports.

Q. Can a small credit union really compete?
A. Yes! This product was created specifically for small and mid-sized emerging credit unions that haven't given up on making loans to their members. The CULE system takes the human element out of where and who to send the loan to with processes like MemberMatch and "Next-in-Line" ensuring that each CU gets their own existing members' loans. You can be on the program and be located right down the street from the largest and most aggressive lender in your market and still consistently get loan approvals and funding through the CULE program, because everyone takes their turn. If you have fewer members you will of course have fewer turns than the bigger guy, but you'll still get your fair share.   That is better than where you are now -  wouldn't you agree? Do the math. For smaller lenders capturing just a few extra loans a month that you are losing now could make the difference between an OK to good, or good to great year for you. For larger finance companies and regional banks, it not unreasonable to expect loan additional volume in the hundreds to thousands of extra funded loans, not just applications, per month.

Q. Does the system provide the necessary reports and data so that I can stay on top of the trends in my portfolios, track delinquencies, charge-offs, and dealer performance?
A. Of course. Standard reports are available as are individual data downloads for each entity utilizing the system at whatever frequency is required by the user/entity.

Q. Have you completed market development and testing?
A. Market testing and operational and processing testing for the back office validation services and administration is complete. We operated (actual loan origination and funding) in the Southern California marketplace for over two years utilizing other vendors' software. The proprietary software has been developed from day one to deliver an alternative to the indirect lending and financing programs available to lenders and dealers that are in the marketplace today.