If you offer loans to small businesses, you might be eager to streamline and improve the process as much as possible, from initially collecting applications to disbursing the funds. The more efficient and powerful your processes become, the more appealing you’ll be to new customers, the more productive you’ll be, and the greater profit you’ll make.
So what are the best strategies to do it?
Use the Right Loan Origination Software
Loan origination software is designed to help organizations like yours efficiently manage loan origination. It can help you with a variety of different tasks, including:
· Form creation and lead capture. For starters, loan origination software might be able to help you with form creation and lead capture. You can decide what type of information to collect from applicants and embed the application directly into your website. Some loan origination software platforms also help you with a host of marketing and advertising tools, allowing you to attract more people to your brand.
· Immediate screening. Your software should also provide some level of immediate screening, weeding out people who aren’t good candidates for your loans and financial products. It can automate the first part of your sales funnel, saving you time and money.
· Underwriting tools. Better underwriting tools will make it easier to review candidates and determine whether they’re eligible for a loan through your business.
· Project management. They also get access to built-in project management tools, allowing you to assign different people to different parts of the project. You could also create and track tasks for your different employees, improving transparency and streamlining productivity.
As you can see, the right loan origination software can help you in many different areas. However, not all loan origination software platforms are the same. When shopping around, make sure you consider:
· Features. Start by looking at the core features offered by this loan origination software. Most platforms have at least the basics in common, but you may find more robust tools in one platform. However, you should also note that just because a platform has more tools and features available doesn’t make it strictly better, especially if you consider the price point.
· User experience. What is the user experience like for this platform? Is it easy for a new and unfamiliar user to pick up the basics quickly? Do people tend to get fatigued after using this platform for too long, or is everything efficiently organized and easy to use?
· Support. What happens if something goes wrong? What if one of your teammates has a burning question about a feature they don’t quite get? Oftentimes, it pays to have a platform in place with a robust customer support team that can help you get the most of it.
· Updates and future. How much developer support is there for this platform? Are there updates planned for the near future? If so, what kinds of features are going to be added? Is there a road map for the long-term future?
· Pricing. Finally, think about price. This platform may have everything you technically need, but is it being sold for a fair price?
Focus on Customer Targeting
Generally speaking, lead quality beats lead quantity. If you find people who are a better fit for your loan products and your organization, you’ll save time during the sales process and you’ll end up with happy customers. Accordingly, much of your small business lending strategy should focus on finding the right people. Optimize your lead generation strategy, as well as your sales and marketing strategies overall, to accomplish this.
Simplify and Shorten the Process
Customers are happier and you save money when the application process is as simple and short as possible. You’re going to have some limitations here; you need to remain compliant with laws and regulations, and you also need to make sure that you do your due diligence. But within those boundaries, it’s important to keep everything concise and streamlined when possible.
Get Feedback From Clients
Client feedback is one of your best resources, both inside the world of small business lending and outside of it. Ask all your clients, including anyone who fills out a loan application with your organization, to fill out a survey about their experiences. What was the easiest part of the process? What was the hardest? Would they recommend you to someone else? What recommendations do they have to improve your brand and your offers? Use this information to improve your small business lending even further.
With the right loan origination software, a better understanding of customer perspectives, and a true commitment to make small business lending better, your business can achieve all its goals. Ultimately, that means making your customers happier and making more money in the process.
