Nine Features that Makes a Commercial Lending Software Exceptional
Majority of the business organizations need additional funds to run their business. While most of them raise money from private investors, there are some businesses that opt for loans.
This type of loan is known as commercial loans. When a financial institution gives a loan to a company for commercial purposes, it is known as commercial lending.
Commercial Lending Process
The commercial lending process is different from other loan processes. Commercial loans are mostly given to business organizations. The loan process is complicated as you have to deal with complex loan requests.
Financial institutions have to calculate risks as well as follow all the regulatory compliance. As it is a complicated procedure, most lenders use commercial lending solutions to automate the process.
Commercial Lending Software
It is loan management software that helps you in the commercial lending process. If you are into the commercial lending business, you need to use this software.
It helps to manage complex and risky commercial loans, increase operational efficiency, speed up the loan process, reduce cost, promote transparency, and automate compliance.
Features of Commercial Lending Software
There are different types of lending solutions available in the market. However, before you opt for a commercial lending solution, make sure it has all these features.
Automated Loan Segregation
The software must have a loan segregation feature. It will help you to automatically segregate the commercial loans on the basis of loan type, amount, and risk.
Loan Origination and Renewal
It should have an automatic loan origination and renewal system. It helps clients to instantly get loan approvals and renew the loan process. This feature is mostly used for fast-track loans.
When it comes to commercial lending, compliance can be an issue. You need to use software that has automatic compliance. It should fulfill all the loan regulations.
There should be a portfolio monitoring feature that helps you to monitor the loan portfolio of the clients. It will help you get information about collaterals and check loan documents.
This feature helps you to generate leads from loan inquiries and manage the leads. You can easily create leads using lead data and convert it into a loan application.
Underwriting and Risk Rating
The software must also include an underwriting feature. It will help you in the advance analysis of the loan and give an accurate risk rating. You can use this feature to mitigate loan risks.
Integrated Loan Closing
The loan closing process can be very hectic, but you can easily manage it via this app. This feature helps you to easily process the loan requests, check risks, eligibility, documents, and well as close the loan request by generating a loan package.
Online Payment Process
With the help of this feature, you can easily check KYC, AML and process the loan request via a digital platform.
Apart from the loan management feature, the software must also include customer relations or management features. It will help you to effectively manage the client request and review customer relationships.
These are some important features of commercial lending software. Make sure the software you use sports all these features for effective commercial lending.