Incorporating software into your private lending business is a smart move if you ask us, but what kind of things should you consider before committing to a system? We asked private lenders what they were looking for when it comes to software and explored some other must-haves within the finance software space.
Here are the top 7 things you should consider when choosing software for your private lending business:
1. User Experience
Like any software, user experience is an important factor to consider. Is it user-friendly? Easy to learn? Is there an accessible and responsive customer support team for guidance? The interface of the software should be organized in a way that makes your day-to-day work flow seamlessly, reduce the amount of manual tasks, and ultimately save you money. This includes built-in communication and task management, automatic calculations for payments and funds, and integration for accounting needs, to name a few.
2. Cost-Effectiveness
Flexible and fully customizable options should be available to fit every business size’s needs, and you don’t want to end up locking yourself into a commitment without having a chance to test the software first. Your software provider should be flexible, offering you the perfect recipe of features for your needs. From small and practical to all the bells and whistles, there should be flexibility in packages and pricing. Make sure that you are getting exactly what you need for a price that fits your budget. Additionally, be aware of any upfront costs and/or long term contracts. Contract and payment terms should be clear and accommodated accordingly.
3. Accessibility
Web-based software is more and more popular these days, as it allows you to access your files from anywhere with an internet connection. No more downloading software to a physical device that needs to stay in one place. With web-based software, you can log in from anywhere and it’s especially useful in times we are currently facing with the state of the pandemic.
4. Security
With modern tech comes modern security. It’s much easier for someone to gain access to your email, so it’s safer to receive data digitally within a system. In addition to being safer, it also makes the data available for all team members, without needing to forward anything to anyone, exposing documents to more risks. Email is a go-to place for data breaches to happen, and with the increase of hacking, according to Virtru, a reported 68% of business leaders feel their cybersecurity risks are increasing. With a web-based software, anyone at your company who uses it should be able to create their own login, and that way, you can assign documents and share data with the appropriate individuals and know exactly who is doing what. This keeps important data where it needs to be and only seen by those who need to see it.
5. Customer Service
Not only are the software features important but the people behind the software are just as crucial to consider. Pick a software company that you feel comfortable with. Get to know the team (management, support, etc.) and make sure they are reliable and that you have the ability to create a good relationship with them. When it comes to private lending, everything is urgent. Will the team be available to help you when you need it? If you want to send out a term sheet right now for a million-dollar deal, and something’s not working; you can’t wait three days to get a response.
6. Efficiency
Tools that help you become more productive and efficient are always beneficial. A platform that holds you accountable to these things? Even better. Great software for private lending specifically- should be tracking all deals, and you should easily be able to tell what’s in your pipeline at any current time. Things like knowing when emails are sent, reminders to do things, signatures needed, etc. Pick software that’s going to eliminate mundane tasks instead of giving you more manual work to do. The platform should allow you to focus on other aspects of your business. Get a system that will help you and your team increase efficiency and productivity!
7. All-In-One Convenience
A lot of software systems are “good”, but they don’t have everything all in one place. Your software should be built to get you through your processes and what you do on the day-to-day, as seamlessly as possible. You should have accessibility to everything you need, each step of the way; from origination and servicing to discharge, with connectivity to third-party software, and everything in between. Digital files should be able to seamlessly flow to broker software, securely sent to borrowers, etc. Rather than having to switch in between different systems to get these things done, have it all in one place to make your daily operations overall much more convenient and efficient.
In conclusion, the software you want is something that will act as an engine to keep your business running smoothly, efficiently, and at full speed! It should essentially save you time, money, and allow you to focus on growing your business.
