Businesses of all sorts have embraced the digital transformation in recent years. Some have done so because they have had no other choice. Others have gone digital after realizing it would streamline operations, improve efficiency, and boost productivity. Among the latest to get on board are hard money lenders.
The digital transformation is all about setting aside the old ways of doing things in favor of newer, digital technologies. It is about eliminating paper and physical data storage. It’s about moving data and information into the cloud where it can be automated and secured. Hard money lenders might be late to the game, but now that they have arrived, they are jumping in full force.
What Hard Money Lenders Do
If you’re not sure about what hard money lenders do, understand that these are private lenders providing funding and services to clients who either don’t want to utilize traditional lenders or are working on projects those lenders won’t touch. Real estate investing is a prime example. Traditional lenders tend to avoid real estate investing because it’s too risky. On the other hand, hard money lenders like Actium Partners thrive on real estate investments.
Actium Partners lends investors money to obtain new properties. The loans tend to be short term, usually between 6 and 24 months. Hard money loans also tend to be interest-only loans. Borrowers pay interest over a loan’s term followed by a balloon payment of the principal at maturity.
Software for Hard Money
Most of hard money’s adoption of the digital transformation is rooted in software platforms that allow them to centralize nearly every aspect of their businesses in a single cloud environment. And in fact, a typical hard money lending package is a modified type of loan origination software. Here’s what a hard money lender would usually get with a digital solution:
- Loan management tools.
- CRM functions and features.
- Cloud-based document management.
- Collateral valuation tools.
- Automated underwriting.
- E-signature capabilities and verification.
- Payment processing capabilities.
- Portfolio management tools.
- In-depth analytics.
Each of these tools and capabilities help hard money lenders streamline their day-to-day operations. Hard money lending software centralizes data and processes. Where automating mundane tasks is possible, software is programmed to do just that.
Better Engagement With Clients
While most of what goes into hard money lending software he’s focused on the lender, there are some client-facing features. Those features are almost always presented through a client portal. Think of this portal as being similar to one you might log on to when you want to make an appointment to see the doctor.
A hard money portal gives current clients their own online space through which they can manage their loans. They can log on to make payments, check balances, review maturity dates, analyze past loan performance, etc.
An online portal also gives clients the opportunity to apply for new loans in a secure and hassle-free environment. Applying through a hard money lender portal would be no different than applying for a loan online via a traditional lender.
Doing Business Better
The whole point of a business embracing the digital transformation is to do business better. Digital technologies tend to be more efficient and streamlined compared to the older ways of doing things. From healthcare to legal to insurance and real estate, companies are finding that embracing the digital transformation is one of the best things they have ever done.
Hard money lenders are finally getting on board with the digital transformation, too. And as they do so, they are doing a better job of managing their businesses and serving their clients.