MADISON, Wis. — The CUNA Lending Council has released a new white paper, "Indirect Lending: How to Develop the Best Approach" that provides a general overview of indirect lending programs, including providing information on the different approaches that can be taken to launch and maintain a successful indirect lending program and a discussion of some of the emerging challenges in the market. When done correctly, the CUNA Lending Council says "an indirect loan program has the potential to increase a credit union's loan volume, add members, and provide a convenient point-of-sale tool."

The white paper examines the common characteristics of indirect loan programs and assesses their potential benefits and risks.

While each credit union's program will be somewhat unique, the council states, the white paper looks into the underlying issues and factors to developing a unique program, such as its goals, the competitive situation, and the geographic area it serves.