By Jon Fry, Founder and CEO of Lendflow
The Role AI Plays in SMB Lending
In SMB lending, speed and accuracy are crucial and can play a big role in whether a lender wins or loses a customer. Pre-qualification stages have improved over the years, originally a manual process, now just a few clicks online to start the loan process. But the real bottleneck comes after a customer says yes – when it’s time for document collection, underwriting and finalizing the deal.
This is where AI agents are changing the game. No longer limited to chatbots and summarization tools, it’s now embedded into workflows, connected to lender systems and more accountable for measurable outcomes like approvals, conversions and time to fund.
Modern AI agents work alongside human teams by ingesting tax returns and financial statements, running checks and calculations and drafting credit memos – supporting these teams rather than replacing them. By handling the “busy-work”, AI agents give lenders the space to spend more time and energy on critical decision-making.
Imagine an applicant qualifies for a loan, underwriting begins and an AI agent sends an email to the customer outlining the documents needed to continue. If the customer doesn’t respond within a set period of time, an AI call and text is made to remind the customer of next steps. Once a document is uploaded, AI automatically scans to ensure that the document type is correct and valid. If an expired ID is used, the customer will immediately get a notification that the document is not usable. AI keeps the process moving with reminders and support throughout the underwriting process.
Capable AI agents also ensure that SMB borrowers have more transparency and clarity throughout the entire process. Instead of sending generic messages about document requirements, today’s models provide specific updates – for example, notifying borrowers when an offer has been approved but a tax return is still outstanding. This not only eliminates friction for the borrower but also helps increase conversion rates.
The Power of AI Memory
Memory layers are and will continue to be one of the most powerful components of agentic AI, as they store key context that AI agents need to operate effectively. They log application and deal status, track documents submitted and outstanding, and record human and agent actions, along with third-party data – allowing agents to be more autonomous and accurate.
This also enables AI agents to create a better experience for borrowers. Rather than operating solely on data gathered at a single interaction, agents know exactly what is needed to move forward, benefiting the lender and the borrower.
The Lasting Impact
AI in lending has entered a more mature phase in 2026 and sophisticated agents are at the forefront – supporting the lending process for SMBs at every stage. AI is no longer simply executing tasks; they leverage data to make more informed decisions and help more applicants complete their loans.
Today, AI agents identify the greatest pain points in lending workflows and improve processes, gaining trust every time there is a successful outcome. As AI agents continue to advance this year and beyond, the SMB lending space will benefit from faster decisions, more accurate underwriting, improved borrower experiences and greater revenue with less operational drag.
