Can the Business Lending Industry Go Paperless?

| November 10, 2012
Business Lending Industry Go Paperless

Business Lending Industry Go Paperless

After some amount of reservations, lending agencies are now embracing the move and are going paperless. Customers are not unaccustomed to the long and tedious activities associated with the application process for getting a business loan. The endless wading through large amounts of paperwork, having to submit business and marketing plans then arranging meetings with a bank manager is all finally set to come to an end. With the innovative new models of business lending now breaking onto the scene, business owners can now look forward to a future where they can request and receive a loan through a process that was totally paperless. This article provides all the details on this exciting news.

The Good News

An increasing number of financial entities are now finding it easier to remain competitive and compliant while reducing cost and improving their customer service. This all comes on the heels of them going electronic and using paperless lending technology to secure loans for their customers. The benefits have resonated with lending agencies on such a scale that now as much as 80% of the volumes of loan documents that are processed by the largest lenders in the industry are done electronically. This is a 100% increase on the 40% that was recorded some years ago.

Fast Cash When You Need It

Online cash loans are fast, easy and beneficial for both the customer and the lender. Customers are spared the long waits and endless paperwork while, lending agencies (in addition to the other benefits) are better able mitigate against fraud, and also pick up on suspicious activities much faster. Customers are also able to apply for loans from the comfort of their home. Quick, fast and reliable are popular terms used to describe the paperless loan system.

Online For Speedier Dealings

With the former brick and mortar process of having to fill out some times multiple forms, customers save time and stress less. With less paperwork to sift through and file away, agents also save time and stress less. They are now better able to trace and keep track of a customer’s application, view its progress without having to dig deep for files after files before they can tend to the customer. It is also much easier for them to produce a client’s borrowing history and status by simply bringing it up from electronic documentation.

Information at your Fingertips

The risk of something going wrong is lessened for both the lender and the client as it is less likely that files will go missing without a trace. The lending process is now smoother, more transparent and easier to follow both on the part of the lender and his client. The use of the paperless system makes it easier for internal data sharing to take place so that all employees can access the relevant data. This reduces the wait time for clients when they call through to obtain particular information on their loan status.

The new technological innovations that have enabled paperless lending have certainly brought the lending industry on par with other industries that have long been utilizing the latest technology to their advantage.

References

http://nationalmortgageprofessional.com/news17701/paperless-lending-offers-fraud-risk-mitigation

http://www.swiftsend.com/whitepapers/paperless_how_to_get_started.html

This guest post was contributed by Darren Bechard, a freelance writer with a longstanding career in the finance industry. He mainly writes about business finance and enjoys sharing his tips and insights on numerous blogs. Visit Wonga for Business for more business finance options.

Can the Business Lending Industry Go Paperless?

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