The 'Must-Have' Closing Technology You Didn't Know You've Been Missing
Believe it or not, we find that most commercial lenders do not realize they can automate complex loans. We hear it every day from top lenders we talk to: “Automation of complex loans just isn’t possible.” Well, guess what? You can and, dare we say, you must.
Commercial banking institutions that fail to embrace automation for their complex loans are missing out on a crucial competitive advantage. Automating complex loan processes is not just a matter of efficiency—it’s about futureproofing your institution. Without this technology, you risk falling behind competitors who are already streamlining operations by automating complex loans. Imagine what they are accomplishing: closing loans faster, increasing loan volume, and achieving greater borrower satisfaction. Automation brings speed and simplicity to the entire process, eliminating attorney involvement and saving significant time and hassle for both lenders and borrowers. This is an awakening—realize that you can automate these loan complexities to stay competitive and ensure future growth. Don’t let outdated processes hold you back; futureproof your lending operations and keep pace with industry leaders.
What is the Meaning of a Complex Commercial Loan?
Larger loans inherently have more moving parts, and when there are more moving parts, you always end up with one thing— more complexity. Increased complexity in a loan product means you have to do your due diligence when it comes to both documentation and coordination throughout the closing process. There is also more capital at stake with larger loans, introducing more risk. Savvy lenders must pay special attention to managing both additional document requirements and risk to protect their interests and profits over the life of a loan.
What steps should lenders take to address these issues? Looking into the right technologies is an essential first step. Lenders who leverage the right, must-have closing technology on their commercial loans get the performance, compliance, and efficiency they need to succeed with even the largest and most complex products.
Typical Make-Up of a Complex Loan
(GoDocs automates it.)
Let’s start by breaking down all those “moving parts” in larger loans. A complex loan typically involves loan values greater than $2 million. Property types covered by these loans are often tenant properties managed by commercial operators and include:
- Multi-family apartment buildings
- Mix-used office/residential buildings
- Retail centers
- Office buildings
- Industrial parks
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2024 Commercial Lender’s Guide to Automating the Complex Loan
List of Complex Loan Components At-a-Glance
(GoDocs automates it.)
Not surprisingly, the borrowing structures of these loans often introduce more complexity. These loans can include:
- Loan value is >$2M
- Tenant properties managed by commercial operators, for example:
- Multi-family apartment buildings
- Mixed-use office/residential buildings
- Retail centers
- Office buildings
- Industrial parks
- Complex borrowing structures
- Multiple borrowers
- Non-standard vesting scenarios
- Multiple guarantors
- Mixed collateral as security
- Multiple collateral jurisdictions
- Third-party agreements between lenders and diverse parties such as:
- Commercial tenants
- Property managers
- Related pledgors of collateral assets
- Unique repayment structures
- Detailed financial covenants
- Customized financial reporting requirements
All of this means one thing— lenders must simplify the process every step along the way to mitigate risk exposure.
The structured approach to GoDocs loan document automation highlights the importance of flexibility and precision in handling larger, complex loans, differentiating sophisticated solutions from standard, inflexible templates.
Experience the Future of Commercial Loan Document Automation
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