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Your Construction Loans Don’t Get A Summer Vacation
Is your office empty these days? For a large number of employees, summer vacation season is an important time of the year when they are able to get their head out of work for a while and simply relax.
On the other hand, work doesn’t suddenly vanish or press pause just because of your vacation. This is doubly true in construction, where summer is the peak work season. This also means that the demand for construction loan draw requests won’t dwindle in the summer months – on the contrary!
Still, there is a way for you to enjoy your summer vacation without worrying about approving draws for any of the projects in your construction loan portfolio; or, worse yet, getting a lien placed due to delayed payments to contractors. Construction lending software can take a whole lot of work off your hands by automatizing processes that would otherwise require your personal effort. That way, current affairs will keep ticking even when you’re away.
Now, let’s take a closer look at how the construction loan management software can do your work for you.
Anyone who has ever been involved in the review of a construction draw request must be aware of the sheer volume of documentation required. This body of documents has to be processed and approved, and up until recently, it was done manually. The recent implementation of machine learning in banking has made a large part of this process automatic, shortening the work dramatically and minimizing the risk of human error. All documents are digitized and analyzed by the software that uses an algorithm to analyze the data and point out any errors or deficiencies. See intelligent back-office process automation in action within this short video.
The approval process for construction loans is generally long, tedious, and requires the involvement of a number of individuals. The construction loan management software helps with making the process quicker and easier for all involved parties. Approvals are tracked, coordinated and collected from a centralized location, and any problems are automatically identified and addressed. If you’re planning a vacation, you can simply add a new person to the approval list or, if necessary, stay attuned to the process even while you’re away – you can get all relevant information on your mobile device, processed and sorted in a convenient manner that allows you to review and approve in no time.
As we all know, the story of construction loans doesn’t end with approval. Tracking the progress of the construction project and the loan itself requires a variety of reports. Loan monitoring software makes reporting so simple that you can get real-time data structured and organized on your phone in a matter of seconds.
For instance, you can use your phone to review portfolio level or project status level and get instantly updated info on the current state of matters such as any pending draws, loan commitments, project performance details, budget breakdowns etc. This massive body of information is also presented visually so that you can get an overview of affair even at a short glance.
Check out these eight construction loan monitoring reports for more examples.
Most of us involved in construction are aware of the potential financial damages that can result from a lien. In fact, 83 percent of contractors we surveyed have filed a lien due to slow payments.
Automated construction lending software can alleviate this risk by tracking all finances, including all completed and outstanding payments. This allows you to monitor all payments in a centralized location and avoid lien disputes over any missing payments. Furthermore, the software allows you to automate payment processing, thus creating a quick and efficient payment system that ensures that all involved parties are paid out and all payment records are safely stored – perfect for keeping the gears churning even as you’re lounging on a beach.
To conclude, the show must go on even if you and your colleagues are away from work. With the help of machine learning and automated construction loan management software, your work can be done in a matter of minutes, and plenty of it will take care of itself without your involvement.