Today, hard money and private lenders track and manage loans in one of three ways:
with an all-in-one software system
Those who manage loans manually typically use an Excel spreadsheet. While this may be a comfortable and tried and true methodology, it comes with three major issues that are, unfortunately, built right into it.
First, by having to enter data into or onto a spreadsheet, data entry/keying errors will happen. Humans make mistakes, and this technique relies on humans.
Second, it is inherently inefficient because this method happens offline. It does not enjoy the seamlessness that comes with an online solution.
Lastly, manually tracking is time consuming and labor intensive. And as the old adage says, “time is money.”
Another loan management technique is with an all-in-one software system. While this solution offers greater accuracy, efficiency and time savings than the manual method, it can come with its own share of concerns. Many loan management software systems are designed to answer every need out there in the areas of loan tracking, loan servicing and origination. However, many of you do not require all this functionality given your size or the types of loans in your portfolio. So, you end up paying for a comprehensive solution when you only really need and use a fraction of its features. This approach to loan management software is very inefficient from a cost perspective. And even with the high price tag, the training and tech support that is typically offered is inadequate, time-consuming and/or inconvenient. Add to that the fact that the vast majority of these software systems are not cloud-based products, meaning they do not convert the data, nor do they update with new releases automatically.
The third loan management technique is used the least and that is through outsourcing. Generally, very small lending operations outsource, but they typically abandon it as they grow and bring tracking, servicing, and/or origination in house because it costs less and gives them greater control over their portfolio. However, once these functions are in house, they have to be managed either manually or with software.
The Bryt Software Solution: A Better Approach
The Bryt Software System was created by lenders with loan management software experience who believed they could come up with a better solution. The goal was to develop a program that addressed the shortcomings of existing loan servicing software products ─ namely cost inefficiency, poor support and non-cloud-based solutions ─ while preserving the distinct advantages of using software:
Obtains payments more easily
Ensures more accurate accounting
Allows for collaboration
Enables real-time communication with lenders, investors and borrowers