There’s Never Been a Better Time Than NOW to Modernize your Loan Management System
Updated: Jun 30, 2021
In these challenging times, lenders are feeling the impact of a weakened economy as new business efforts and funding grind to a halt and loan defaults begin to rapidly escalate.
Many are starting to adjust to the "new normal" and some are allowing employees to continue to work remotely.
At the same time, those who routinely accepted in-person payments or even payments by mail have had to create workarounds in order to protect the health and well-being of customers and employees alike.
Yet, there is a real opportunity for lenders right now, in particular hard money and private lenders, to improve your internal processes and automate your monitoring and managing capabilities by using a loan management software system.
Bryt Software is tuned into the needs of hard money and private lenders and understands your desire for a simple, flexible and cost-effective loan management alternative ─ especially as you wrestle with heightened business distress, social distancing and economic uncertainty.
Hard money and private lenders looking for a modern software solution that fits the simplicity of your standard loans yet has the flexibility to handle more complicated transactions will appreciate Bryt Software’s cloud-based, modular loan tracking, servicing and origination system.
The Inherent Challenges of Current Loan Management Techniques
Today, hard money and private lenders track and manage loans in one of three ways:
manually
with an all-in-one software system
by outsourcing
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:
Eliminates mistakes
Automates tracking
Obtains payments more easily
Ensures more accurate accounting
Facilitates compliance
Allows for collaboration
Automates reminders
Enables real-time communication with lenders, investors and borrowers
The Move to Modular
The Bryt team’s first order of business was to negate the “all-in-one” paradigm that developers of loan management software have relied on and, instead, create a modular system that would allow hard money and private lenders to purchase a scalable software solution that deliver the following benefits:
Pay only for what you need/Cost-effectiveness – By creating software modules with different functionality, you only pay for those loan tracking and management functions you will actually use as opposed to buying one comprehensive solution that offers more features than you truly need.
Ease of implementation – A modular approach lends itself to fast and easy implementation. In fact, installing the base software module and receiving training on it can be accomplished in about an hour. And we offer live, remote support by phone at no additional cost.
Smooth transition to more sophisticated features - By structuring a system that builds more and more features into each module, you can easily transition to greater functionality on a piecemeal basis over time, rather than being overwhelmed by an all-in-one solution that requires considerable training and process/work-flow adjustments all at once.
Embracing the Cloud
Developing a 100% cloud-based software solution was the Bryt team’s next priority, and it has proved to be a mission critical feature in today’s unusual environment where lenders are expected to work remotely and have no face-to-face interaction with borrowers. Bryt’s cloud-based technology means:
Loans can be managed/serviced from anywhere – all that is needed is an Internet connection
Documents are accessible from anywhere
Loan payments can be made via ACH – eliminates in-person and mail-in processing
Data is safe and secure thanks to best-in-class hosting on the Microsoft® Azure Cloud
Software can be accessed by multiple users in multiple locations
Data is backed-up and the software is updated automatically, seamlessly
Bryt Software Packages: The Specifics
Thanks to modularity and cloud-based technology ─ two unique features that differentiate Bryt from other loan tracking solutions ─ Bryt’s software modules can be configured to any lending business. You simply use your own loan documents, processes, notices and collection procedures, etc., and the software automates routine tasks such as creating documents, producing client notices, processing ACH payments and more. Bryt’s software also helps you maintain compliance by tracking activities, and facilitates improved communication by automating letters and notices. And, its web portals provide real-time web reporting for both your lenders and your borrowers.
Let’s look at each of the modules in greater detail:
Loan Tracking: This base product was built for all types of loans. Essentially, the Loan Tracking module automates all loan calculations, thereby eliminating any potential for errors. With this module, you can easily see who is current with payments and who is falling behind. It automatically generates professional, high-quality statements, notices, and letters, while providing real-time detailed access into the accounting for every loan in your portfolio. And it includes a set-up wizard to ensure quick and easy implementation.
Loan Tracking Software Features :
· Dashboards that give you real time business analytics from one convenient system
· A customer database that keeps your customer information organized
· Supports multiple interest rate calculations
· Records loan payments, interest, principal, late fees, escrow, etc.
· Includes real-time amortization schedule calculator
· Document management and storage
· Sophisticated tracking and reporting with exporting capabilities
· Provides an audit trail of all activities by user
· Print and manage 1098s and 1099s
Loan Servicing – add-on functionality: This module streamlines and automates all loan servicing tasks. In doing so, it reduces the potential for errors and saves you time, giving you the ability to service more loans and improve your profitability.
Loan Servicing Software Features:
· Builds payment application waterfalls and customer rules
· Supports multiple lines of loan products
· Allows you to easily create different loan types (i.e., term loans, non-revolving, commitment, and pool loans)
· Allows automated late fees and NSF processing
· Processes ACH electronic payments
· Provides web portals for both your borrowers and lenders/investors
· Accommodates direct loans and capital-based pools
· Provides flexible configuration of service fees
Loan Origination – add-on functionality: This module gives lenders the ability to originate higher quality loans faster. Its automation tools will help you determine borrower creditworthiness and approve/fund more loans. Its dashboards enable viewing of your entire loan pipeline in real time from one system. And it even helps reduce risk and improve portfolio yields by managing due diligence. Loan
Origination Software Features:
Customer relationship tool that keeps a complete record of customer information, interaction, notes, and call logs
Custom, configurable workflow and task management to ensure consistency and compliance
Upload and save all loan origination documents in one place, with easy access for your entire team
Creation of professional, custom, branded loan applications
Automatic generation of customized loan documents
There’s Never Been a Better Time Than NOW!
As we collectively endure the ramifications of this global health and economic crisis, hard money and private lenders must grapple with how to continue to function operationally while respecting social distancing recommendations and, at the same time, manage increasing loan defaults as new loans and funding diminish.
With staff working from home and new business activity slowing, this is an opportune time to modernize your manual loan management system or replace your inadequate loan management software with a 100% cloud-based alternative that allows you to purchase only the features your lending operation needs and will actually use. In doing so, you will realize increased efficiency by being able to manage loans from anywhere. The automation inherent in Bryt Software assures greater accuracy too. And the modular nature of Bryt products makes them affordable and easy to implement. Best of all, you can rest easy knowing that minimal training is needed, but live support is included and always available.
So, if you find yourself working remotely and mainly servicing existing loans due to decreased volume during this pandemic, why not use your time wisely and begin the transition to a better loan management solution? The Bryt way is the better way.
Contact sales@brytsoftware.com for more information or visit www.brytsoftware.com to learn more.