When we set out to create the best software tool for lending to small businesses, we included five years of experience and dozens of conversations stakeholders across the country. Our top two discoveries were:
Existing loan software focuses on providing backend solutions for lenders and does little to inform borrowers of options and progress.
The challenges around user experience and gathering essential documentation, to fully leverage existing backend solutions, has been largely overlooked.
This is a big problem. Ask any lender about the challenges involved with collecting information, and you may even see an eye roll. In fact, it was not uncommon to hear from our core customer discovery cohort that the collection of supporting documentation could easily consume at least one third of a loan originators work week. Entrepreneurs are busy people who have to prioritize revenue generation while pursuing debt financing at the same time. Emails from a lender are not necessarily a top priority, and updates on anticipated delays are hard to communicate. Many of these interactions involve chasing down email attachments and referencing stand alone checklists that must be manually updated by both parties along the way.
From the lender’s perspective, every extra reminder about missing information reduces their capacity to make a final determination on the loan as quickly as possible. In addition to the lack of real-time shared checklist, confusing online portals and file drops result in unorganized information that takes more time to review and leaves applicants wondering if their information was ever received. This is busy work at it’s best! Busy work creates delays, and every additional day between application and funding frustrates applicants and limits portfolio growth for lenders.
“Lenderfit provides a modern client portal with the security and record keeping ability that lenders require while providing individual loan originators with the ability to create customized experiences for every client.”
In contrast, Lenderfit provides a modern client portal with the security and record keeping ability that lenders require while providing individual loan originators with the ability to create customized experiences for every client. As a result, the number of days to close decrease while overall portfolio growth and customer satisfaction increase.
Personalized automation is key. Lenderfit enables lenders to follow up automatically via SMS or email based on the applicants' preference through a cloud-based checklist that allows lenders and borrowers to see the same list of the required information. Requests for information are crafted by the loan originator who also has full control over adding additional required information and removing irrelevant requests.
Future-ready software must empower lenders to connect with small business owners via SMS and mobile devices. 91% of userswho opted in to receive texts from a brand see those messages as ‘somewhat’ or ‘very useful’. Text messaging, however, continues to be underutilized in lender-borrower interactions.
In addition to reducing the number of days to close, future-ready software must also demystify the lending process for applicants. It must provide context for why the information they are sharing is important and reveal any review milestones along the way. Until now, an intuitive solution has been missing.