Business Lending Software: 5 Core Things You Need to Know
As a lender, you're continually on the lookout for ways to streamline your processes and make your operations more efficient. One of the best ways to achieve this is by using business lending software. This software helps you manage your loans more effectively, saving you time and money in the process. However, before you can make a wise choice on any one software, and begin to reap the benefits of it, you need to understand exactly what it is and how it works. In this article, we'll discuss 5 core things you need to know as you go about your research on lending platforms, and what makes them so valuable for lenders. Let's get started!
1. What is business lending software?
Business lending software, also known as business loan management, is a digital platform that assists lenders with every step of the loan cycle and provides their customers with an elevated borrowing experience. It allows the lender to easily track their clients and loans and keep up-to-date on where they are in their repayment process---from anywhere, and at any time. Modern lenders must have automated processes and be able to offer positive customer experiences. Loan servicing software is the solution to this.
2. What are the top benefits of using business loan management?
Business loan management hosts a gold mine of benefits for lenders. The accuracy and efficiency it provides saves time, money and the hassle that comes with manually processing loans. Here is a list of the main benefits.
- Greatly reduces human error and miscalculations
- Gives a clear view of performance data
- Saves an enormous amount of time
- Naturally increases revenue
- Boosts customer satisfaction
- Improves organization
- Caters to a new generation
When you find yourself reaping benefits like these in your lending institution, you can bet it is due to the number of features and functions available within your loan software.
3. What are some must-have features in lending software?
If you think you have your business loan management process all set, check out these features that could take your organization to the next level. From automation and streamlined workflows to insightful reporting and customer self-service, these are some of the best features to look for in a loan management software.
As a lender, there's one thing you know for sure: your software has to be customizable. You need to be able to tweak it to meet the specific needs of your business. That's why, when you're looking for loan management software for small business or large ones, it's important to find one that offers unlimited customization options, as Nortridge does. This way, you're able to create a system that works perfectly for your organization. So don't settle for anything less than the best---make sure your commercial lending platform is completely customizable.
Workflows, automation and integrations
How to manage business loans? Implement a system that gives you workflows, automation and integrations (API).
What is a workflow?
A workflow may be thought of as a process by which tasks are passed through pre-determined sets of possible actions and outcomes. On paper, it would resemble a flowchart; an example of a customer service workflow is provided on our site to help conceptualize this development process. Also, our workflow set up and overview video talks about what is a workflow and why would you want to use one? Once you are in this partition looking around at what all you can do, the possibilities may seem endless.
What is automation?
In the words of IBM, "Automation is a term for technology applications where human input is minimized." There is basic automation, which streamlines and centralizes routine tasks, and there is integration automation, which is where a system can be made to perform human tasks and repeat the actions once humans have defined the rules. In our automation webinar, we talk about how you can configure different processes to be automated.
What are integrations?
An API, or application programming interface, allows for two or more computer programs to communicate with each other; or in other words, to integrate. It's a type of software interface that makes it possible to offer services to other pieces of software. Nortridge delivers an exciting array of integrations from Payix, DocuSign and BankruptcyWatch to Sonnet credit dispute management, Solutions by Text, PayNearMe and so many more.
Customer relations manager (CRM)
Since working with customer data takes place at every stage of the loan cycle, it makes sense that most business loan management software comes with a CRM. However, each lending institution is so unique that not every platform is going to have all of the functions and capabilities that you need. Unless you go with Nortridge. In our system, the contact information portal is the main storage area for customer information in your lending institution. This screen contains names, addresses, demographics, relationship information and more. Entering the contact info for each customer is required before any loans can be entered into the system for that customer. Multiple loans may be entered on a single contact. Schedule a demo with us so we can show you just how customizable each partition is within the dashboard.
Data analysis and reporting
Data analysis in business loan management has become an integral part of lender intelligence strategies, as lending institutions realize its potential for data-driven insights. A data analysis report aims to provide your organization with the information it needs to make wise future decisions. In theory, you can't diagnose a problem if you don't have the data. So just as your car's dashboard might give an indicator of what is wrong with it, so too will pulling numbers from your loan management dashboard help you figure out where things may not be going well. Once these pieces are put together, using graphs & charts, you'll have more clarity about any potential issues.
When you need to dramatically improve loan collection rates, nothing quite does it as well as a fully-equipped default management system. With an integrated collections module like ours here at Nortridge, you are able to view all the vital information on a past-due loan or a distressed borrower, all in one screen. In a sufficient commercial lending platform, you should be able to see how many times the borrower has had a non-sufficient funds payment, or late payment and how many kept and broken promises they've been in with you. With a fully-loaded dashboard, you should be able to see when payments are due, what payments have been made (and when), what collateral is available and more.
If there was just one thing we could say we have gone above and beyond here at Nortridge---there's not just one, but if there was---it would be our customer support department. Not that we expect you'll need a whole lot of help---our system is user-friendly and works seamlessly across the board---we just know how frustrating it is to need something to work immediately and no one is around to give you the help you need. Not with Nortridge. We have provided an extensive user guide, training video library and knowledge base, for those who might want to self-serve and work things out on their own first. But right within the same window you have access to consulting services, a user community with weekly live webinars and you can also find the place to submit a ticket for when you decide you'd just really like the added support of a live person.
4. What does business lending software cost?
The average price for a loan software solution starts at around $1,000 per month, but it can be cheaper or much more expensive depending on your needs and whether you have the software custom-built. Nortridge has all the features, benefits and customizations you could ever need in a loan software, and we start at just $1,050 per month. View more details on our pricing page. To custom-build software, you're looking to pay around $40,000 or $50,000, but we don't recommend you go that route. It's definitely not worth that initial cost.
5. Which lending platform would be the best choice for you?
You can't just take any old loan servicing software and assume it will work for your company. You need to analyze current pain points, translate those into business needs, pair them up with features that solve those needs and find a system that offers it all for the price you need. Our Nortridge clients came to us for just these reasons. After scouring over the various software options out there, they found that the Nortridge Loan System was best suited to meeting their needs and improving efficiency within their organizations.
We have seen it time and again, how our business loan management software helps lenders speed up the process, get organized and make more money. Are you ready to give it a try? If so, our team of experts are available to walk you through every step of the way--from getting started with the software to make sure your data is backed up and secure. With our help, you'll be on your way to streamlined lending in no time at all. Ready to take the plunge? Give us a call and schedule a demo today!