Bank In-house vs. LSP Model

Loan Inputs & Economic Assumptions

Total Annual Loan Volume ($)

Average Loan Size

GTD. AMOUNT (%)

SECONDARY MARKET GAIN ON SALE INDICATOR %

LSP ECONOMICS SPLIT (LENDER) %

BDO Commission % (In-House)

Prime Rate %

INTEREST RATE SPREAD ON UNGTD.

Cost of Funds % (on UnGtd.)

Servicing Strip % (on Gtd.)

Bank Retains Servicing Economics? (With Lendesca only)

CHOOSE:

Yes

Referral Source Fee %

% of Loans Sourced From Referrals

Originations with 10 year term (%)

Originations with 25 year term (%)

Staffing Inputs (In-House)

Staff Headcount

Staff Salary (Total $)

Executive Headcount

Executive Salary (Total $)

Staff Includes:

• Underwriters

• Closers

• Servicing/Liquidation Staff

• BDOs (Business Development Officers)

• BDAs (Business Development Associates)

• Admin

Executive Includes:

• Head of SBA

• Head of SBA Credit

• Marketing Director

• Head of Servicing

• Sales Manager Base + Override

• Closing Manager

The above salaries are the median salary in a range as reported in the 2025 SBA Coleman Industry Compensation Report.

Budget & Overhead (In-House)

Marketing Budget ($)

Technology & Systems ($)

Includes: LOS, Servicing, CRM, IT/tech support, other software

Internal Bank Labor Allocation ($)

Includes: Credit oversight, Compliance, Loan ops, IT

Non-Commission Bonus % of Salary Base

Optional Bank Oversight Cost (With Lendesca)

Employee Benefits % of Salary Base

Corporate Tax Rate %

Accounting Method

CHOOSE:

Cash Basis

Accrual Basis

📊 In-House vs. LSP Model Comparison

All values are annualized (steady-state) and driven by Inputs.

Line Item	Bank (In-House Build)	Bank (With Lendesca)

Key Insight

Net Income with an In-House Model $0

Net Income with an LSP Model (With Lendesca) $0

Delta (Lendesca – In-House) $0

While the In-House model generates higher revenue, the LSP model delivers better net economics due to eliminated operational costs.