Years ago, lenders used spreadsheets and manually entered calculations in order to keep up with the complex and tedious details of each and every construction loan they managed. It could take days to receive inspection details and approve draw requests. Fast forward to today, where financial institutions can have custom reports at their fingertips and inspectors can submit details from the construction site through their construction loan risk management software.
Construction loan software was created to streamline the construction loan management process, so bankers could spend less time on spreadsheets and get back to serving their communities. With automated draw exports, budget calculations, and inspections, bankers are adding days of interest income back to each draw. At the same time, financial institutions are seeing a stronger relationship with borrowers, builders, and other stakeholders that appreciate having an efficient, easy digital solution to work with.
Modernization
The days of waiting a week for draw approvals and inspections are gone. Financial institutions are now using construction loan management software to streamline their draw approval process. A digital workflow accelerates draw cycle times, providing approvals days faster than the manual process and can increase draw interest by 8-12%.
Automated inspections also accelerate the draw approval process. They instantly provide bankers with the information they need to confirm the progress required on a project so they can fund a draw request quickly. This can add additional days of interest income to every draw. These features, combined with digital notifications, are helping financial institutions streamline and modernize their construction loan management process.
