loan-origination-systems-for-small-business-lenders-streamlining-the-funding-process

loan-origination-systems-for-small-business-lenders-streamlining-the-funding-process

Loan Origination Systems for Small Business Lenders: Streamlining the Funding Process

As a small business lender, the loan origination process can be complex and time-consuming. But it doesn’t have to be. With the right loan origination system (LOS), you can streamline the process, reduce costs, and improve your customer service.

What is a Loan Origination System?

A loan origination system (LOS) is a software application that automates the loan origination process. It can help you manage every step of the process, from lead generation to loan closing.

Benefits of Using a Loan Origination System

There are many benefits to using a loan origination system, including:

  • Streamlined process: A LOS can automate many of the tasks involved in the loan origination process, freeing up your time to focus on other things.
  • Reduced costs: A LOS can help you reduce costs by automating tasks and eliminating the need for manual processes.
  • Improved customer service: A LOS can help you improve customer service by providing borrowers with a self-service portal where they can track the status of their loan application.
  • Increased efficiency: A LOS can help you increase efficiency by providing you with a centralized view of all your loan applications.
  • Improved risk management: A LOS can help you improve risk management by providing you with tools to assess borrower risk.

How to Choose the Right Loan Origination System

When choosing a loan origination system, there are a few things to consider:

  • The size of your lending institution: Some LOSs are designed for small lenders, while others are designed for large lenders.
  • The type of loans you make: Some LOSs are designed for specific types of loans, such as mortgages or small business loans.
  • Your budget: LOSs can range in price from a few thousand dollars to hundreds of thousands of dollars.
  • Your level of technical expertise: Some LOSs are easy to use, while others require a high level of technical expertise.
  • Your customer service needs: Some LOSs provide excellent customer service, while others do not.

Implementation and Training

Once you have chosen a loan origination system, you will need to implement it and train your staff on how to use it. Implementation can be a complex process, so it is important to work with a vendor who can help you through the process. Training is also important to ensure that your staff is able to use the LOS effectively.

Conclusion

A loan origination system can be a valuable tool for small business lenders. By streamlining the loan origination process, reducing costs, and improving customer service, a LOS can help you grow your business and improve your bottom line.

If you are interested in learning more about loan origination systems, Fundingo offers a free demo. Call (877) 227-7271 or visit Fundingo’s website to learn more.