All Posts By

Enrique Gimenez

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Construct – Construction Loan Management

By | Blog

Construction Loan Management to Help You Build a Better Bank

Years ago, lenders used spreadsheets and manually entered calculations in order to keep up with the complex and tedious details of each and every construction loan they managed. It could take days to receive inspection details and approve draw requests. Fast forward to today, where bankers have custom reports at their fingertips and inspections can submit details from the construction site.

We created BankLabs Construct to streamline the construction loan management process, so bankers could spend less time on spreadsheets and get back to serving their communities. With automated draw exports, budget calculations, and inspections, bankers are adding days of interest income back to each draw. At the same time, bankers are seeing a stronger relationship with borrowers, builders, and other stakeholders that appreciate having an efficient, easy digital solution to work with.

Construction Loan Management Process: How To Modernize and Streamline

The days of waiting a week for draw approvals and inspections are gone. Banks are now using construction loan management software like Construct to streamline their draw approval process. Our digital workflow accelerates draw cycle times, providing approvals days after than the manual process and can increase draw interest by 8-12%. 

Automated inspections also accelerate the draw approval process by instantly providing bankers with the information they need to fund a draw request quickly. This can add additional days of interest income to every draw. These features, combined with digital notifications, are helping over 150 banks streamline and modernize their construction loan management process today.

Manage Your Construction Loans Effectively

 

The amount of manual data entry needed to manage a construction loan portfolio can be daunting, not to mention ineffective. Without constant analysis, problems can arise within a spreadsheet without an admin noticing. Construct uses budget and loan data imports to reduce the amount of time needed to enter data into the system. The ability to upload loan data into BankLabs Construct eliminates the need to manually re-enter information and reduces the risk of human error.

Our automatic budget calculations feature automatically calculates remaining budgets based on draws, further reducing the risk of human error and allows bankers to spend less time doing manual calculations. 

Construction Loan Management Benefits

Construction lending is a significant portion of many financial institutions’ portfolio. Construction loan management tool benefits include:

– Maximizing ROI by taking days off of your turn-around time.

– Mitigating risk by providing detailed audit trails and real time alerts. Spreadsheets can’t alert you when a loan is overfunded.

– Improving the experience with borrowers, builders, and other stakeholders by offering an easy-to-use mobile solution.

Construction Loan Management Reports

One of the best features of a construction loan management tool is that it provides a detailed audit trail for each property and real-time reporting for an institution’s construction loan portfolio. This allows for efficient and informed oversight from an executive level. One of the most popular features of Construct is our custom reporting feature. At the click of a button, this automated feature provides a real-time look at a bank’s construction portfolio, decreasing risk and helping institutions make faster business decisions. 

Mitigate Risk and Optimize Construction Lending

Construction lending, traditionally a high-risk industry, is ripe for change and digital transformation. Our tool maximizes risk mitigation for our clients. In fact, auditors love us! Construct helps reduce risk by providing a detailed audit trail and real time alerts to users. You have 24/7 access to loan monitoring on any mobile device.

Construct – Leading Construction Loan Management Software

Struggling to manage your construction loans? We’ve got a solution! Construct is the industry-leading Construction Loan Management Software, providing construction lenders and contractors with a streamlined system allowing them to manage their loans and projects. With a suite of tools, Construct helps you minimize risk while making the most of opportunities.

The construction industry is one of the most profitable industries in the US and it’s only getting bigger. Unfortunately, it can be time-consuming and manual for lenders, especially as a financial institution grows. Construct solves this by automating the workflow, providing real-time analytics, and helping avoid costly mistakes.

loan management

Construction Loan Monitoring and Why You Need It

By | Blog

What is Construction Loan Monitoring and Why is it Important?

Construction loan monitoring is the process of reviewing and monitoring a construction loan to ensure that it is being paid in a timely manner.

Construction loans are typically loans that are taken out for the construction of a building, which need to be repaid in full after the completion of the project. Construction loan monitoring ensures that these construction loans are being repaid on time and will not negatively affect the borrower’s credit rating.

Construction financing is often considered to be one of the most risky types of lending because it relies on future income and assets. This type of financing usually has higher interest rates than other types of lending but also has more lenient repayment schedules and terms.

Construction loans are a type of financing that allows developers to build homes and other buildings. Construction loan monitoring is an important part of construction loans because it helps ensure that the developer does not default on the loan.

Defaulting on a construction loan can be catastrophic for both parties involved. The developer could lose access to their funds, which will make it difficult to complete their project. The lender will also suffer from a loss in revenue, which they might not be able to recover from.

How to Choose the Right Construction Loan Monitor for Your Company

In the construction industry, there are many different types of loan monitors and lenders. It can be daunting to find the right one for your company.

The right construction loan monitoring tool can increase efficiency while reducing errors. It can provide a detailed audit trail and custom reporting. The best construction financing monitor will give you all of this information in an easy-to-read format.

Banklabs Construct brings all your loans under one roof and gives you a complete overview of your portfolio. It calculates your risk exposure, provides alerts on delinquent loans, and keeps you updated on changes in interest rates. With all parties on the same page, Construct reduces risk while increasing cycle times, leading to fewer losses and greater gains.

 

5 Construction Loan Monitoring Best Practices

When it comes to construction finance, there are a number of best practices that can be followed. These practices will help in the monitoring of construction loans and the process of securing them.

These 5 tips will help you monitor your construction loans more efficiently:

  1. Make sure your process has risk monitoring checks throughout the process
  2. Increase your staff capacity with modern technology
  3. Have reporting capability on hand at all times
  4. Store documents all in one place for easy monitoring
  5. Automate as much of the manual process as possible to reduce errors

How Construct Loan Monitoring Software can Help You Save Money While Raising Awareness of Risks

Construction loan monitoring helps you save money in a variety of ways. It helps you save money by catching any problems with your contractor before they become costly problems that can’t be fixed. It also saves you money by preventing unnecessary change orders and by catching any errors before they happen. Alerts take the guesswork out of your lending process.

In addition to saving you money, construction loan monitoring also serves as an awareness tool for risks. When done properly, it can help identify risks and vulnerabilities in your project so that they can be mitigated ahead of time. 

Other construction lending process risks include:

  • Project Delays
  • Overfunding
  • Unnecessary line items
  • Delayed timeline

By carefully monitoring the project process and receiving overfunding alerts and notifications, lenders can catch mistakes before they become a problem.

What are the Benefits of Loan Monitoring Services?

Construction loan monitoring is an important aspect of construction lending. 

The benefits of construction loan monitoring include:

– Ensuring timely repayment

– Protecting lender’s interest

– Ensuring that the project is completed on time and within budget

What is the Best Way to Monitor a Construction Loan in the New World of Digital Technologies?

Construction loans are complex, and the best way to manage them is to make sure that you have a system in place.

Monitoring construction loans is not an easy task. It requires a lot of know-how and experience, which can be hard for some people to come by.

As the world of digital finance continues to grow, the need for a new type of construction loan system is arising. Construct is an innovative and simple solution for this growing need. The platform provides transparency and control for both lenders and borrowers as it tracks the loans in real-time. A unique and highly secure process, Construct helps to better manage risk. As a result, it is easier for companies to grow their business with less risk involved.

 

Expediting Draw Processing through Construction Loan Monitoring

Monitoring your construction loan is very important because it will help you stay on top of any changes in your financial status and manage your assets and liabilities more effectively.

The construction loan monitoring process is an important part of the entire construction finance process. Construction loans are often complex and involve a lot of moving parts. As a financial institution grows it’s construction portfolio, manual monitoring can extend the draw process time to an unhealthy level. A monitoring tool will use automation to cut the manual time down and expedite your draw process timeline, leading ultimately to more funding.