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Construction loans are complex and require efficient management throughout their life cycle. It can be especially complex to efficiently manage them during the post-close draw process. This is where construction loan management software really shines: it can help manage the post-close process efficiently, greatly enhancing the overall experience for lenders, borrowers, and builders.
So, what exactly is construction loan management software? It serves as a replacement for spreadsheets, serving as the system of record for all construction loans. Its primary goal is to optimize the productivity of your draw administration team, minimize risks, and provide comprehensive reporting and visibility to all stakeholders involved. The software is also commonly known as Construction Draw Software and Construction Lending Software.
To further delve into this topic, let’s explore the following sections:
- Indicators you need technology
- Advantages for your business
- Implementation best practices
Indicators You Need Technology
Exploring the indicators that suggest the need for construction loan management software is crucial. If you are considering software, chances are you are currently using spreadsheets to manage your draw process. While spreadsheets are commonly used by construction lenders, they come with hidden risks and costs. They are time-consuming to manage, prone to errors, and lack built-in tracking, risk monitoring, and reporting capabilities. These issues can have a detrimental impact on the draw process, leading to frustration, errors, and incorrect information being provided to stakeholders.
What spreadsheets lack is a single source of truth for all stakeholders to access the most updated information at any given time. When everyone involved has their own copy of a construction budget or other essential documentation, it becomes chaotic and challenging to coordinate. Information gets lost in translation, mistakes occur, and the result is frustration and errors that can derail the entire draw process.
By centralizing your draw management process, you can achieve a newfound level of efficiency. With everyone referencing the same information, you can say goodbye to costly errors and delays. Moreover, you will have a clear audit trail of document changes and approvals, ensuring transparency and accountability throughout the project. It’s a win-win situation for everyone involved.
If you are facing difficulties in generating and sharing reports, implementing software that serves as your single source of truth will alleviate that problem. All the information will be current and stored in one place, and the best construction loan management software will provide you with reporting features that are as easy as clicking a few buttons.
Limited visibility for the draw admin team, borrower, or builder is another sign that it’s time to invest in technology for your construction lending programs. When you cannot see the full picture or answer simple questions, it may be time to consider technology.
A dedicated customer app is a must for today’s construction lenders. The best technology will provide an easy way to securely communicate and exchange information with stakeholders and make draw requests as easy as ordering on Amazon. This app can also provide customers a view of real-time information on the loan, including the budget of record, documents, and communications. Land Gorilla’s OneSite, a web and mobile app, provides stakeholders a simple draw request process with clear next steps, keeping everyone on the same page and projects on track. OneSite can be white-labeled with your branding so the exceptional experience your customers have is equated back to you.
Advantages of Construction Loan Software to Your Business
This next section delves into the numerous benefits that construction loan management software can bring to your business. One of the earliest benefits you’ll experience is improved productivity and efficiency in evaluating, approving, and communicating draw requests and change orders. This is due to the elimination of many manual processes.
Software provides advanced intelligence and monitoring capabilities, enabling proactive risk identification and alerts for expired licenses or delays in draw requests. This ensures a smooth construction program and minimizes potential issues before they arise. Moreover, construction lending software streamlines tasks and workflows, facilitating fast and accurate disbursements while keeping all parties informed throughout the entire process. Each step of the process becomes more efficient, giving your team more time to focus on value-added tasks.
In today’s digital world, customers have high expectations for accessibility and convenience. To meet these demands, it is essential for construction lenders to offer a dedicated customer app. This app should not only simplify draw requests and information exchange with stakeholders, but also provide customers with a real-time view of crucial information such as budget records, documents, and communications. By offering such a seamless and comprehensive experience, construction lenders can ensure that their customers are always well-informed and satisfied. The best software will provide a white-label app to configure with your logo, so the exceptional experience your customers have is equated back to you.
Proactively identifying potential risks is essential for the success of any construction program. To effectively monitor these signals, a dedicated software solution designed specifically for this purpose is key. Stay informed about the number of days since the last draw and the expiration of licenses, ensuring timely action before they escalate into significant issues.
With construction lending software, you can effortlessly optimize tasks and workflows for both your team and your customers. This ensures that everyone involved remains informed and up-to-date throughout the draw request and approval process. As a result, payments are expedited with enhanced security, leaving your customers without any uncertainty about the status of their fund requests.
Eliminate the drain of valuable time on mundane manual tasks by harnessing the automation capabilities of construction lending software. This powerful tool guarantees that no crucial steps are overlooked or delayed. Customize workflows with event-based automation and precise stops to ensure your team completes the right tasks at the right moment.
Software will consolidate all communications and shared documents in a single centralized hub, accessible to both your team and customers. No longer will messages and important files be trapped in inboxes or physical filing cabinets. With this streamlined system, each team member can seamlessly pick up where another left off, ensuring that your customers never have to wait for timely responses.
Construction loan management software is a game-changer for the industry, providing a comprehensive and efficient solution for managing construction loans. By replacing spreadsheets with purpose-built software, lenders can improve productivity, enhance customer experience, and gain better visibility into risk and performance. With its automation capabilities and centralization of information, construction loan management software is a valuable tool for any construction lending business.
Implementation Best Practices
A successful introduction of construction loan management software to your teams and customers requires careful planning and execution. Utilizing successful practices employed by other financial institutions, you can ensure a smooth transition and maximize the benefits of the software.
To delve deeper into these best practices and gain valuable insights into implementing construction loan management software, download the complete ebook for free.