Digital technology is reshaping the commercial construction lending process

We are in an era of booming technological innovation, but some aspects of commercial construction lending still lag behind. Advances that can streamline business operations at all levels for lenders will go a long way in reshaping the industry.

Commercial construction loans operate within a framework of multiple moving parts, with each of these moving parts potentially slowing things down. These include lender identification, financing, loan processing, loan closing, progress reporting, disbursements, contractor payment on demand, and system integrations. Digital automation can streamline these commercial lending operations and accelerate construction lending.

Digital technology is imperative for commercial construction loans to keep up with the market. By advancing the digital landscape, this type of technology will streamline business lending logistics so that commercial construction lending can work in tandem with the rapidly evolving operating systems that this technology provides.

The future of commercial construction lending is a beautiful place—if digital technology is the one setting the tone.

5 ways digital technology is speeding up the construction loan process

1. Automation of lender identification

The use of advanced technologies, such as a construction loan market, provides access to perfect partnerships between a wide variety of lenders and builders. These marketplaces manage lender-builder relationships with precision and attention to detail by curating a pool of lenders all focused on construction/development type lending and who understand the landscape. By providing only the best of the best in the business, builders gain access to the kinds of relationships necessary for a successful project.

The first steps are also quick and easy because, as we all know, time is money.

2. Improved digital finance

If the rates aren’t good, what’s the point? These digital marketplaces specialize in the best rates due to their unique history. The innovators behind these solutions have realized how difficult it can be to secure the right kind of financing while simultaneously managing all other aspects of a business using outdated tools. These solution providers were able to leverage their knowledge to create an enhanced technology experience for future builders looking for the best financing options.

3. Automation of Loan Closing

To stay competitive, lenders need to adapt to digital technology solutions for loan closing. Gone are the days of preparing outdated closing documents, which typically involved attorneys taking days to deliver documents. After all, speed is of the utmost importance in all commercial construction loans. Slower loan processes mean later project start dates and delayed revenue to start. By accelerating the end of the loan approval process, digital technologies also reduce fixed costs and closing costs, all of which are passed on to borrowers.

4. Loan negotiation.

Using loan closing automation further reduces closing costs and times. Loan Closing Technology eliminates 100-page closing documentation, uses plain language, and dramatically reduces negotiations. This can help ensure that a lender stays in compliance and also allows for a better and more seamless borrower experience, helping lenders increase their supply of loyal customers.

5. On-Time Draw Disbursements and Contractor Payments

These technologies are also designed to work for all parties involved in the contractual agreement between a builder and a lender. Since money is the end goal for all parties, the experience surrounding payment and the draw is carefully designed to benefit each individual. Payments are instant, approvals happen in real time, and information is consistent no matter which side of the contract you’re on.

The Turning Point of Commercial Construction Lending

The next generation of commercial lending software makes generating closing documents simple, fast and cost effective. Technologies like this help players in the construction lending industry stay competitive and are backed by leading industry lenders at banks and credit unions of all sizes. With quality commercial loan software, lenders have a reliable way to manage and streamline every step of the commercial loan process.

Companies looking to gain a market advantage should align with these technologies for a variety of reasons. They can accelerate business growth at incredible speeds, increase profits and increase the number of employees, as well as the number of customers supported, which adds to the overall attractiveness of the image. and corporate branding. Businesses that don’t take advantage of SaaS can find themselves operating at slower speeds, unable to keep up with the competition.

In the world of commercial construction loans, falling behind is simply not an option. The pace is fast and the details are nuanced. Streamlining processes to increase business value will accelerate your business into the future age of technology, giving it the ability to keep up and even set the pace.

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