Loan participations keep your credit union earning, liquid, and lending – and make ALCO meetings a lot more fun

by QuantyPhi Balance Sheet Optimization Services

Want to have more fun at ALCO meetings?

Let’s face it, ALCO meetings are no fun when you have poor performance numbers to report. They are even less fun when unpredictable markets make solutions unclear, but there is a way to meet more performance goals more often and make ALCO a lot more fun. Safe, smart loan participations can keep your credit union earning, liquid, and lending – no matter how the market swings.

How do loan participations help? 

Loan participations are balance sheet optimization tools that let management buy and sell loans in order to create and maintain solid loan platforms, generate income, and better manage risk. They help credit unions remain healthy and strong in both good and challenging times. If your portfolio contains an excess of indirect loans; if it needs a higher concentration of mortgage loans; if you need to free up liquidity to meet demands; or if you need to diversify to remain within risk parameters, loan participations can help.

On the buying side:

Loan participations help credit unions manage regulatory requirements, offset non-diversified loan portfolios, and re-build loan portfolios experiencing too much attrition.

On the selling side:

Loan participations help credit unions manage regulatory requirements, reduce undesirable loan assets or concentrations, create liquidity, and generate income that can be used for other earning purposes.

Buying and selling loans is the smart, strategic way to:

  • Keep the loan portfolio performing and outperforming
  • Boost income while staying within risk parameters
  • Better manage liquidity so you can keep lending

But not all participations programs are alike.

Credit unions are unique financial institutions. Many outside-the-industry providers do not understand credit unions’ unique needs, purposes, and goals. They may not be aligned with your credit union’s best interests. Make sure your loan participations partner is well-vetted and make sure they offer: 

  • Access to multiple loan offerings with no exclusivity, no fees, and no minimum purchase requirements 
  • Simple reporting procedures
  • Comprehensive analytics
  • Best-in-class compliance
  • Buying and selling guidance throughout the entire process
  • An easy-to-use, straightforward loan participations platform

Loan participations keep credit unions earning, liquid, and lending. They help credit unions meet and beat more goals more often. And when your credit union consistently peak performs, your ALCO meetings are a lot more fun. To learn more about safe, smart loan participations, contact QuantyPhi Balance Sheet Optimization Services for Credit Unions at (414) 433-0176.

More News