Is your office during the warm months? 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 and relax.
On the other hand, work doesn’t suddenly vanish or press pause just because of your vacation. This is doubly true in construction, when 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, by automatizing processes that would otherwise require your personal effort, can make you efficient even when you’re out of the office.
Document processing
Anyone who has ever been involved in the review of a construction draw request is 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 implementation of machine learning in banking has automated a large part of this process, dramatically decreasing both the manual work requires as well as minimizing the risk of human error. In Rabbet, all documents are digitized and analyzed by software that uses an algorithm to scan the data and point out any errors or deficiencies.
Approval
The approval process for construction loans is generally long, tedious, and requires the involvement of a number of individuals. Construction loan management software helps by making the process quicker and easier for all involved parties. Approvals are tracked, coordinated and collected, and any issues 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.
Reporting
The construction loans process 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, even on your phone, in a matter of seconds.
For instance, you can use your phone to review portfolio level or project status level and instantly view updated info such as any pending draws, loan commitments, project performance details, budget breakdowns etc. This information is also presented visually so that you can get an overview at a short glance.
Check out these eight construction loan monitoring reports for more examples.
Payments
Most involved in construction are aware of the potential financial damages that can result from a lien. In fact, our annual Construction Payments Report highlights that an overwhelming majority of contractors 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—perfect for keeping business moving even as you’re lounging on a beach.
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