About SMB Lending



This guide is intended to provide a general outline of new Galileo functionality prior to its release to production. The information in this guide is therefore subject to change as development proceeds and is not a guarantee of future functionality. If you are interested in this feature, contact Galileo for details.

Galileo is developing a new installment loans product designed to provide financing to small and midsize businesses, also known as SMBs. Installment loans for SMBs are often an important source of funding that can be used to start a new business or cover various business expenses to expand operations, like entering a new market.

Galileo’s installment loan product gives you the ability to create and manage virtually all aspects of your SMB loans, including simulating loan offerings for customers to make an informed choice on the terms of their loan. When you establish your program, Galileo will work closely with you to configure loan subproducts that have varying terms, interest and or fees (including fixed rate, if desired), repayments, and other settings that suit the unique financial needs of different types of businesses.

Your lending partner’s obligation will be to consider the creditworthiness of the borrower, likely taking into account factors such as the business' and/or individual’s credit history, financial statements, and revenue projections. They will also consider the purpose of the loan and the borrower's ability to repay the loan.

Use cases

Below are some use cases for small-medium sized business loan:

Start-up capital

Earth Dog Fashions is a new company that creates dog clothes from leftover or minimally defective fabric from traditional fashion brands. They have tested a prototype for their first jacket and are ready to start production. In order to do so, they need start-up capital to buy manufacturing equipment. Earth Dog Fashions already has a banking relationship with you. In exploring their loan option, Earth Dog Fashions decides to apply for a small-medium business loan with their banking services to keep their finances consolidated with their preferred institution. While they are a new business with minimal credit history, Earth Dog Fashions offers an installment loan of $3,000.00 with a fixed interest rate due to their strong revenue projections and the business owner’s past successful business ventures.

Expansion capital

Best Building and Son runs a successful solar panel installation business in Salt Rock City. Recently, the demand has increased in the surrounding suburbs but they are unable to realistically take on those customers due to long commute times and limited staff. The business owner recently saw their bank is offering no interest loans to small and medium-sized businesses, so they decide to apply. They apply, are approved, and receive two loan options with different terms. They accept the loan offering of $25,000.00, with no interest and a fee rate of 3% to be paid off over 24 months. With this influx of capital, Best Building and Son can open a second office location and hire additional staff, increasing their service area and capturing new customer segments.

Working capital

Cozy Cafe has struggled to run their day-to-day operations due to inflation and rising cost of renting their cafe space in a busy shopping center. Cozy Cafe decides to apply for a loan through their bank for the amount of $8,000.00 to help purchase necessary supplies and cover their rent for the next six months. You assess Cozy Cafe’s financials and learn that the cafe has been profitable for 3 of the 5 years they have been in business. Upon reviewing their application, you decide to loan Cozy Cafe $10,000.00 loan with a 6% fee rate to be paid off over the next calendar year in monthly installments.


Galileo’s offering will enable clients to:

  • Streamline the loan management process — Galileo’s platform can help manage loans by performing tasks such as payments processing, interest calculations, and delinquency management, reducing the workload for clients.
  • Enhance transparency — Real-time access to loan information, including repayment schedules, loan and payment statuses, and balances.
  • Enhance lender capabilities — Galileo provides lenders with detailed daily reporting, allowing you to monitor loan performance and identify potential risks.
  • Improve customer experience by offering more flexible lending terms
  • Real-time disbursements of funds — The funds are immediately available in the customer’s account after the loan is accepted (Galileo DDA accounts only).

What you provide

You will be managing all of the requirements for standing up an installment loans program with Galileo.

What Galileo provides

From Galileo you can expect:

  • Loan management — Loan creation with payment schedule, repaid in installments.
  • Ability to simulate loans prior to creation in order to generate the data points needed to populate a loan disclosure document and a TILA (Truth in Lending Act agreement).
  • API endpoints to manage the loan from creation to charge off, including but not limited to creating the loan, creating payments from a Galileo or external DDA, and retrieving the status of active loans and future installments.
  • Daily files for loan reconciliation. (See Reports for Installment Loans for more details.)

Loan API Endpoints

Simulate the loan options for customers to compare different loans (Annual Percentage Rate (APR)s, loan terms, etc.).Simulate Loan
Create the small and midsize (SMB) business loan and disburse funds into a Galileo-linked account.Create SMB Loan
Check the status of the loan, such as the current balance, loan cycle, and the remaining payments.Get Loan Status
Create a payment on a single loan, either from a primary (Galileo DDA) or an external account.Create Loan Payment
Check the payments made to date on the loan and receive an update schedule of future payments required.Get Loan Payment Schedule
View individual installment status across all installments.Get Loan Installment Statuses
Charge off an account.Update Loan Status