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What is a Participation Loan?

By | Blog

Many banks looking to retain valued customers, but are nearing their lending limit, turn to loan participations as a way to diversify and mitigate risk. There are many reasons why both originators and participants choose to partake in loan participations. We will explore a few of these below.

Benefits of Participation Loans

The lead bank can retain control of a significant amount of customer relationship by selling loan participations. By selling the participations, a bank can remain within its legal lending limits while still coming up with sufficient funding. The banks that buy the participations share in the profits. Consequently, these loans are an excellent way for smaller lending institutions to team up with several other banks looking to put their excess liquidity to work.

The borrower may choose to manage the loan participations in-house, which can take a significant amount of staff time and resources. If the buyer manages the loans manually using spreadsheets, they must take into account staff time, additional training, reporting requirements, and other costs. If the buyer chooses to use loan participation automation software, significant savings in time and money can be realized. Always look into the fees associated with a loan participation platform, most are minimal.

Loan participations require quality resources and partners. However, due diligence is essential for success. While a participation loan may be riskier than a traditional loan, a well-planned and documented due diligence process will help avoid this. If banks want to participate in a loan, they should ensure that the originating institution meets their credit standards. This is because the risk is spread among many lenders.

Banklabs has streamlined the process and made participations more accessible to both originators and participants. By requiring diligence documentation directly on the platform, Banklabs has significantly reduced the transaction costs associated with loan participations. Banklabs also enables more participants to enter the participation market and make participations more useful to banks and credit unions. Its forward flow system allows visibility of loan supply and demand. This transparency has made participations an effective tool for diversifying portfolios.


Participation loans offer a variety of benefits for banks. In addition to reducing the risk to the borrower, they allow participating institutions to increase liquidity and capacity. They can also extend their geographic reach by taking on new participation loans they previously did not have access too. However, they come with additional risks and should only be undertaken after careful research. 

The primary factor in determining the success of participation loans is matching the risk to the quality of the loans in the portfolio. Lenders should only participate in loans that meet their own standards, and they should never assume that the quality of the loans offered by other parties will be satisfactory. Participation loans can be an easy way to diversify a lender’s portfolio and manage a balance sheet.

A participation loan can also be beneficial to financial institutions that buy and sell loan portfolios. This is an excellent way to diversify an institution’s portfolio and reduce risks associated with high-risk customer or community segments. The process also allows the lead financial institution to maintain control of a critical customer relationship. Further, the benefits of a participation loan are often based on the resulting revenue and increased liquidity. For this reason, many financial institutions are turning to participation loans as a low risk way to put access liquidity to work.

Repayment terms for Participation Loan

Participation agreements require participating banks and credit unions to share information about the Borrower. These documents detail the accrual status of loans, financial statements of Borrowers in the Bank’s possession, and any other credit information the bank or credit union receives pursuant to the Loan Documents. Participants must monitor loan quality on an ongoing basis and obtain timely information from relevant sources. The analysis of loan participation quality should capture trends in several areas. One great benefit of using BankLabs Participate to monitor participations loans is that all documents and loan information are stored in one place, giving you an easy and accurate, real-time snapshot of your loans, without back and forth emails. This is especially convenient for internal reporting and audits.

Repayment terms for participation loans vary by agreement and lender. Loans with participation agreements generally require interest-only payments while others require principal and interest payments. A loan participation tool like BankLabs Participate can help keep every party involved on the sale page throughout the life of the loan by having up to date details available 24/7. Greater transparency can help avoid many problems that are found in the traditional, slow, manual lending process.

Participation loans can help credit unions diversify risk by providing additional sources of income. Nonetheless, the risks associated with participation loans should be analyzed and documented by individual credit unions. As a result, credit unions should ensure that the lending practices of their partners align with their own policies and controls. This can help them ensure adequate revenues and minimize unexpected losses. Further, loan participation agreements should include a comprehensive participation agreement. BankLabs Participate provides a standard agreement that most financial institutions on the system today use, but also provides the option to upload and use your own digital agreement, if needed.

Purposes of Loan Participation

In addition to helping communities achieve economic development, participation loans can reduce a bank’s risk exposure by helping that bank diversify its asset base. These loans also allow the originating bank to retain control of an important customer relationship without sharing it with a competitor. To the borrower, the originating bank is still “their bank” and retaining valuable customers is increasingly important in today’s lending climate. Listed below are some reasons why banks should consider selling loan participations.

A participation loan is an agreement in which one or more lenders participate in the financing of a particular loan. While the other lenders are merely investors who purchase shares of the loan, the originator retains control of the loan and manages the relationship with the borrower. It is responsible for originating the loan, dealing with communication with the borrower, and servicing the loan itself. One of the great benefits of using a loan participation tool like Participate is that all of the back and forth communication is automated for you. All participating parties get notifications when action needs to be taken or when repayment or other important updates have been made to the loan.

A primary factor for participation’s success is matching quality with risk. Lenders should only participate in loans they would make themselves, and should not evaluate the standards set by the participating lenders carefully. It is best to limit the number of participation loans from one lender to ensure a balance of risk and reward. Participation loans can also help institutions extend their geographic reach by leveraging their expertise and relationships with other lenders. 

Getting a participation loan

Many banks who already participate in loans do so with a small group of trusted partners. The same banks they have always conducted participations with. While this is great, it does create a barrier for new trading partners, and limits the originating bank’s ability to realize new options. BankLabs Participate hosts a Marketplace to help democratize the lending process by providing originators with new trading partners, if desired. By opening up options beyond their usual circle of participants, many banks are able to fund their loans faster, and with added diversity, mitigating risk.

Conversely, many banks who are dedicated participants for a single originating bank can now broaden their diversification by having access via the Marketplace to new loan options. Maybe these new options are different lending sectors, or maybe they are new geographical regions that the participating bank did not previously have the opportunity to work with. Either way, this is a win-win for both originator and participant. 


Selecting Participating Institution

When selecting a participating bank, consider the benefits and risks involved. The principal factor in successful participation loans is matching the quality of the loans with the level of risk in the portfolio, and managing your balance sheet to your institutions comfort level and standards. Make sure you choose participating institutions that offer loans that you would be comfortable making. Also, limit the number of loans from a single lender or industry – take the opportunity to diversify your portfolio to balance your risk.

construct management

Get Started in Construction Loan Administration

By | Blog

Many of today’s construction loan administration services streamline the process, reducing the need for manual paperwork and minimizing errors. Many of these services offer digital tools that enable construction site inspectors to submit paperwork directly to the lending team. Additionally, they can provide customized reports and decrease the funding cycle time. By combining these services, construction loan administration is now as easy as ever. 

Construction loan administration tasks

In a competitive lending environment, the process of construction loan administration requires constant improvement. The role of a construction loan administrator is to manage commercial and residential projects and lines of credit, manage the construction loan draw process, review and analyze project budgets, and recommend funding to the C-level officers within the bank. In addition, the role of a construction loan administrator includes ordering construction-related third-party reports, reviewing relevant loan documents, and closing loans. Here are some of the ways that Construct can improve the efficiency of lending processes.

Construction loan automation

Automating the construction loan process can save you a tremendous amount of time and effort. Lenders can use construction lending software to streamline the process and automate their financial reporting. An ideal construction loan management solution will allow you to access detailed financial data from a single platform, generate highly customizable reports, and have real-time updates on loan status. You can also use the construction loan administration software to track invoices, payments, inspections, draws, and contracts. The world’s best construction loan management software is Construct. It includes a contract management system and integrates with core systems and other software commonly used by financial institutions.

Construction Loan Process

The process of construction loans is complex and requires constant oversight and documentation. Traditionally, construction loan administration has been a labor-intensive process involving paper files and manual data entry. Now, Construct is helping construction lenders cut down on these expenses by reducing risk and streamlining the process. Removing human error and accessing data from anywhere are just two of the very important ways that Construct eases the loan process.

Benefits of Construct for Construction Loan Management

The most efficient construction loan management software is Construct. This software makes the entire construction lending process more efficient and accurate for lenders, subcontractors, and builders. It cuts the draw process by days and ensures compliance while minimizing risks. This software provides a comprehensive database of construction lenders. You can also view your entire lending portfolio from a single platform. It also alerts lenders when signatures or authorizations need to be made, or if documents and data are missing.

Utilizing a Loan Software

If you’re looking for a platform to manage the construction loan process for you, consider Construct. 

Traditionally, construction loan administration has been done manually, which can result in a high level of error, frustration, and wasted time. Thankfully, Construct is now available to replace manual processes. We eliminate the need for paper files and spreadsheets, eliminate errors, and provide unparalleled visibility. And if you’re an experienced loan manager, you’ll be glad to know that construction loan administration software can handle exponentially more loans at once, increasing your capacity.

Save Time and Money on Construction Loan Management

Construction loan software can help save time and money by allowing you to focus on other tasks instead of dealing with spreadsheets and data. It can also help you manage more loans in less time. A happy client means repeat business and loyalty. Software like Construct can help you solve the challenges of construction lending, including managing draw requests and communication with borrowers. You’ll be able to make more informed lending portfolio decisions, save time, and increase profitability with construction loan administration software.

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Bank Loan Management Software

By | Blog

Bank loan management software can help you streamline the lending process, eliminating the need for manual spreadsheet entry and paper loan files. With Construct, the complete suite of loan management features can be accessed from a single dashboard, allowing administrators to instantly view outstanding exceptions and information needed to close more loans. By integrating loan management and customer portals into a single platform, bank loan managers can increase productivity and reduce compliance issues. 


Customer portals

Bank loan management software can offer a number of features to make the customer experience more seamless. One of those features is the customer portal. These portals enable borrowers and builders to submit inspections, request draws, and communicate with lenders instantly. These tools are becoming more common and are often driven by industry needs. Other features of customer portals include an effective mobile presence and a convenient user experience. 

Security is also an important feature. Security is of utmost importance for both consumers and lenders. Banks value the backend security features that Construct offers. Customer portal software can unlock another layer of security for the organization. Be sure that the software you choose has the necessary safeguards in place. For example, check whether the software allows for encryption, which is essential for security. Lastly, consider how the customer portal will be used and by whom. 

Construct also offers something that other bank loan management software does not – personalization. Construct offers the ability for each bank to display their logo to borrowers and decide exactly what each borrower and stakeholder is able to access and view within the program. Lenders love being able to customize and personalize each user’s experience and access.

Automated customer portals can simplify the entire process. An automated client portal can be integrated with other tools in the tech stack, allowing borrowers to access and request payments without having to visit an office. Furthermore, these systems can reduce documentation. No more need to spend days collecting paper documents. A good customer portal can be the key to improved customer service and customer satisfaction. 


Integration with other software

Today, lending processes are becoming increasingly customer-centric, making integration with other software for bank loan management software vital. Integrated cloud lending solutions enable seamless integration across various applications and departments. Furthermore, a well-integrated solution can cover loan origination, loan servicing, and reporting. And thanks to APIs, the integrations help save resources and time. Additionally, cloud lending software offers multiple system integration, which allows for improved data accuracy. Gone are the days of relying solely on your bank’s core system. Now, the majority of bank loan management software is part of a complete stack of programs and services used daily.


Benefits of bank loan management software

Using an automated bank loan management system streamlines manual processes and provides automatic calculations and posting. Administrators can track the status of each loan document, and the system notifies them when a document is in need of attention or approval. This means less manual work and more time for the loan administrators to close loans. With bank loan management software, loan administrators are able to manage more loans in less time. Some users have found that their loan administrator is able to handle 250 loans with Construct, whereas previously they were able to take on 100 loans at a time.

The system also allows the lender to manage customer information, track collateral, and supporting documents, and segment them according to status. Many lenders have experienced greater efficiency with bank loan management software from Banklabs. 


Improves quality

A perfect bank loan management software would generate analytical reports, streamline the entire lending process, and increase overall productivity. 

The most basic features of a good loan management software are its ability to automate tasks. It can automatically update and alert administrators when new information has been entered by outside stakeholders, so funding cycles move quickly. Bank loan management software can make all of these tasks easier and more accurate. In addition, a high-quality solution will also make it easy to extract information whenever needed with customized reporting.

The next feature you need in bank loan management software is centralized access to customer data. Centralized access will remove the bottleneck of data storage for each customer. This way, your lending organization can instantly see important customer data. It will also streamline workflows by eliminating duplicate data entry. Being able to view your construction lending portfolio from a high-level view will give administrators a more well-rounded look at the current state of the portfolio, and identify any changes that need to be made in their strategy. 


Reduces turnaround time

The use of good loan management software will reduce turnaround time and expenditure while increasing profitability. The software will streamline the loan process. It will automatically identify at-risk loans and produce accurate data-driven reports. It will reduce the number of errors in math calculations, ensuring faster decisions.

A well-designed bank loan management software will also allow employees to work more efficiently. Digital workflow can accelerate draw cycle times which can help provide approvals days faster. Automated inspections can provide bankers with the information they need to fund a draw request faster. 

Whether you’re running a small bank or a big corporate entity, the right loan management software can help your business run smoothly. By automating manual tasks, the software makes the entire process more accurate and efficient. Not only does the software eliminate manual errors, but it also helps you manage risks better. And it makes it easier to extract information when you need it. So what exactly can loan management software do for you?


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Construction loan system for banks

By | Blog

A New Way to Manage Construction Loans for Banks and Building Real Estate Developers

Construction loans are a major source of income for banks and building real estate developers. Loans are secured by the property being constructed. The construction loan process is complex with many stakeholders involved and multiple documents, signatures, and approvals.

The Current Process for Construction Loans in the Banking System

The current process of construction loans in the banking system is evolving, and many banks are turning to fintech to help.

The process of getting a construction loan is not as tedious and time-consuming as it used to be. In fact, it has become so much simpler that some people are even able to get a construction loan within just a day or two.

Construction loans have always been considered risky for banks because they involve long-term exposure to collateral and there are often no other tangible assets.

Why Banks Should use a Construction Loan System

Banks are always looking for new ways to grow their business while maintaining the same level of service. One way they can do that is by using a construction loan system. This system will allow them to offer loans to builders, developers, and contractors.

Construction loans are becoming more and more popular in the banking industry. Some banks use them as a way to promote growth in their business, while others use them as a way to keep up with the competition. These loans are usually given out by banks that specialize in construction lending and banks that specialize in commercial lending.

The Negative Impact of Not Adopting a Construction Loan System

Construction loan systems for banks are a new trend that is gaining popularity. These systems provide a more efficient way of lending money to construction projects while reducing risk.

The traditional system of lending money to construction projects is not without its flaws. There is no monitoring system in place and this leads to delays. This manual process can cause delays and lost interest income for the lending bank.

With the construction loan systems, banks can closely monitor their investments and reduce the risk while speeding up funding cycle times. 

Construction Loan System for Banks: What You Need to Know

Construction loans are a form of financing that banks offer to those in the construction industry. They are designed to provide funds for projects that are not yet complete, but they can also be used to help finance the purchase of land or equipment.

A construction loan system for banks is an important tool for any bank’s lending portfolio. It includes features such as loan documentation, underwriting standards, and collateral requirements. The system is designed to help banks manage their risk when lending money for construction projects, along with other benefits.

How Can a Construction Loan System Help Banks?

The construction loan system can help banks be more efficient and offer a better borrower experience, all while increasing profit. The system is designed to automate the process of lending and provide a faster, more accurate loan process.

Construction loans are becoming increasingly popular, especially with banks looking to diversify their lending portfolio. Borrowers are looking for a streamlined process to quickly update the lending bank on progress, approvals, and inspections. Banks love the ability to create their own custom reports for internal audits and assessments.

A construction loan system can help banks be more efficient and reduce lending risk. The system is designed to automate the process of lending and provide a faster, more transparent, and more accurate loan process.

Construction loans systems for banks – The Future of Banking?

Construction loan automation in banking is an important trend that will change the future of banking.

Construction loans are a big part of the banking industry. The construction loan process is quite complex and requires a lot of time and effort from banks in order to keep the funding cycle moving. Construction loan systems can help automate this process and make it more efficient for both banks and customers.

Construction loan automation in banking is not just about efficiency, it also has other benefits. For example, construction loan management in banking can help customers get a better understanding of their loan and overall portfolio with custom reporting features. 

Other benefits of a construction loan system are increased draw income, enhanced borrower experience, and mitigated risk. 


loan management

Commercial Construction Loan Software and How It’s Benefiting the Industry

By | Blog

Why Invest in Commercial Construction Loan Software

The construction industry is a booming industry with a lot of profit potential. However, commercial construction loans can be time consuming and challenging. Not to mention, they can be riskier than the average construction lending project. This is where commercial loan software comes in.

Commercial Construction Loan Software helps to reduce risk by increasing transparency, and simplifying the overwise challenging manual process with automation.

What is Commercial Construction Loan Software?

Commercial Construction Loan Software gives financial institutions a leg up when it comes to organization and efficiency. Having all loan details managed and available in one easy to access location keeps all stakeholders on the same page. Overfunding alerts help lenders avoid some of the most common pitfalls of commercial construction lending.

One of the bonus features of using commercial construct loan software is the added experience for the borrower. Inspectors and stakeholders love the convenience of being able to request draws and submit other data right from the job site. 

4 Benefits of Commercial Construction Loan Software for Your Bank

Commercial construction loan software is in high demand and has increased in popularity recently among midsize banks.

Here are the top five reasons why it is crucial for your bank:

1) It will help you to manage your construction loans more efficiently.

2) It will provide you with accurate information in minutes with custom reporting.

3) It will also provide you with tools that will help you to manage your construction portfolio more effectively.

4) Construction loan software can be customized according to the needs of your bank and each individual user.

Why is BankLabs Construct the Best Commercial Construction Loan Software?

Construction loans are complex. With the right software, it’s possible to save time and money with every new project. Not all construction loan software is created equal. Construct is the best commercial construction loan software because It’s easy to use, is up and running minutes, it can streamline your documentation, and can be accessed from anywhere using any device – even on the job site.

What are the Top Benefits of Using Commercial Construction Loan Software?

Commercial lending software is a product that helps the lender manage and track the loan process from start to finish. This type of software is very helpful for commercial lenders because it saves them time and money.

Commercial construction loan software allows lenders the flexibility to take on more projects and loans while keeping costs low. It also provides them with a fast and easy way to track their projects, all while keeping up with deadlines.

There are many benefits of using this type of software

– Increased efficiency

– Reduced risk

– Improved borrower experience

– Lower administrative costs

– Increased draw income by 8-12%

5 Reasons Commercial Construction Loan Software Is Vital For Your Business

1. Financial Documentation

Financial documentation is the backbone of commercial construction lending. It is a critical component of the construction loan process.

Commercial construction loan software helps lenders and borrowers manage the financial side of their construction loans. It provides a clear, easy-to-use interface that helps them to create and view all necessary financial documents in one place.

Construction lending software makes it easy for lenders to manage their entire portfolio of loans. BankLabs Construct can help lenders manage more than just commercial loans. It also tracks lot development, residential, builder finance, SBA loans, and more.

2. Time-Saving Features

Construction loan software is a time-saving tool for the lending industry. It helps in streamlining the entire process from pre-construction to post-construction, which in turn helps make it easier for builders and lenders to manage their finances, track project progress, and make better decisions. Automatic notifications alert stakeholders when inspections are uploaded or when the next step of the loan process is ready.

3. Streamline Workflows

Rather than waiting for a phone call or trading emails back and forth, users of commercial loan software get an alert immediately when an action is taken or when an approval is waiting for them. This cuts down on the back and forth emails with spreadsheets and the games of phone tag. Plus, every step has been documented along the way. No more looking up your last email to see what has previously been discussed.

4. Automation Benefits

Our export system means that lenders do not have to re-enter loan information into their core system. The export file can be uploaded to your core, saving you time and reducing risk of keying errors. Construct’s digital workflow accelerates draw cycle times, providing approvals days faster than the manual process. This in turn increases draw interest.

5. Reporting Functionality

Financial Institutions are constantly evaluating loan profitability and progress. Rather than manually compiling your spreadsheet information, commercial construction loan software like Construct can pull any report needed, whether it’s for one specific project or your entire portfolio. You can customize reports to fit any need and to answer any question. It really doesn’t get much easier than that! 


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Faster Construction Loan Process = More Profit & Happier Borrowers

By | Article, Blog

How many spreadsheets does it take to process a new construction loan? Far too many. The old adage “if it ain’t broke, don’t fix it” comes to mind, but sometimes we don’t know something is broken until it’s fixed. As with everything in the modern world, processes are digitizing, especially for banks in a competitive market. Banks across the country are beginning to feel the strain of the inefficient “old way” of processing and maintaining loans and many are beginning to realize that a boost in efficiency would benefit the bank in multiple ways.

Borrower Experience

Keeping and maintaining great borrowers is one of the best ways to ensure your survival and profitability. As more and more financial institutions are getting acquired or changing hands, offering an exceptional borrower experience is becoming a top priority. What do borrowers want? Less hassle and what they want when they want from any device they prefer. Mobility and automation cut down on borrower effort and leave them with a pleasant experience rather than a headache. To ensure borrowers return to your bank it is key to focus on their experience.

Risk Management

The more real-time information your bank can have, the more protection you can provide to the bank and our shareholders. Having a digital system at your fingertips with text alerts and detailed audit trails can keep your staff better informed and protected than the manual, spreadsheet-based process. Real-time reporting and overfunding alerts help institutions identify and mitigate risk quickly before it becomes a problem.

Increase Draw Interest

Who couldn’t benefit from a decrease in cycle time? An increase in draw interest? If you could decrease cycle time and increase draw interest while increasing staff capacity, wouldn’t you? Banks are turning to technology to accomplish all of these goals. The more efficient your staff is, the more loans they can manage safely and comfortably, and that gain is passed on to the bank’s bottom line. Each day we save in the process is a big boost to draw interest. In these rate environments that are more important than ever.


The great digital change has finally made its way to banks of every size. It is no longer a “big bank” privilege. It is the responsibility of every bank. Even banks that are not intent on hyper-growth are realizing that to stay competitive and retain quality borrowers, they need to adapt and adopt new technologies. The good news is that technology solutions are getting easier and easier to implement. Gone are the days of the months-long implementation process. Today’s systems are mobile and cloud-based, meaning they can be accessed from anywhere, with no downloads and installations necessary. As technology advances these efficient systems will become a part of our everyday lives, in more corners and more sectors than ever. Consolidation and the threat from disruptive fintech lenders are here to stay.  We owe it to our shareholders to build modern, borrower-friendly efficient processes.


  • Matt Johnner, president of BankLabs and board member of Encore Bank.


loan management

The Benefits of Construction Loan Management Software for Banks

By | Blog

What is Construction Loan Management Software?

Construction loan management software is a type of software that is used by banks or other financial institutions to manage their loans and keep track of all documents and transactions.

Construction loan management software can help keep a financial institution organized, streamlined, and prepared for anything, including audits.

This is not just a simple accounting program that tracks the finances. It is a very specific program designed specifically for lending institutions and their needs

The Basic Functionality of Construction Loan Management Software

Construction loan management software is used by banks to manage construction loans. The software helps the bank in managing the entire process of construction loans, from initiation to closing. 

The most important function of this software is that it helps in identifying potential risks and threats related to construction lending. With automatic notification and overfunding alerts, risk assessment and mitigation risk becomes effortless.

How Construction Loan Management Software Works to Increase Efficiency and Reduce Costs

Construction loan management software has given many banks an advantage over the last few years. By automating many aspects of the construction lending process, banks can save days compared to the manual process and can speed up cycle time.

Construction loan management software is a fast-track solution for banks that helps them manage their loans and project finance process from start to finish. This includes all the stages of approval, disbursement, inspections, and more. The software also provides detailed reports about the status of projects on a regular basis which helps in keeping track of payments and collections. Be ready for any meeting with customizable reporting at your fingertips. 

Construction loan management software is an effective tool that can be used by banks to reduce costs and increase efficiency levels.

How Does Construction Loan Management Software Help Banks?

Construction loan management software helps banks in several ways:

  • Increase Draw Interest Income
    • Construction loan management software helps you accelerate your cycle times, so you can fund draw requests days earlier than before. 
  • Increase Efficiency
    • By eliminating spreadsheets from the draw process, having automated calculations and digital approvals at your fingertips means your internal processes are efficient and streamlined. 
  • Mitigate Risk
    • Detailed audit trails help your financial institution to be ready for anything. Automatic alerts also make sure you catch any mistakes before they become issues.
  • Enhance the Borrower Experience
    • Banks love having the option of offering a mobile tool to borrowers, builders, and inspectors. This improves business relationships and satisfaction.
  • Timely Reporting
    • Many banks need specific data on their loan portfolio, and fast. With custom reporting, construction loan management software can help you get the information you need to interested parties with a click of a few buttons. No more scrambling to compile spreadsheets.

Reasons Why Banks Should Invest in Construction Loan Management Software

The software can help the banks by providing them with better insights into their construction portfolio, and it can also help them to understand their risk exposure.

Construction loan management software helps in improving bank efficiency and profitability. It also helps in achieving regulatory compliance and reducing risk.

Banks are increasingly investing in construction loan management software because they have seen the benefits of this investment. They have realized that it improves bank efficiency, reduces risks, and increases profitability.

How to Choose the Right Construction Loan Management Software for your Bank

To make sure that you are choosing the right Construction Loan Management Software for your bank, there are a few things you need to take into account. First, find out what kind of features the software has to offer and what its user interface is like – look for a user friendly product. 

Second, make sure that it’s compatible with your bank’s systems and processes. Construct goes live in one hour and fits nicely between many software and core systems that banks use today. The implementation process with Construct couldn’t be easier. 

Third, check how much customization and flexibility it offers and how much support is provided after purchase. BankLabs Construct provides training and support for all users, not just bank employees. That is essential.

How to Implement a Successful Construction Loan Management Strategy within your Bank

Construction loan management strategy can be a great way for your bank to maintain and grow its customer base. Is your bank looking to grow its construction lending portfolio? This is a great way to keep up with demand.

Successful construction loan management strategies are those that are in place before the need arises. It is important to have a financial growth strategy in place, which will help you maintain and grow your customer base and construction lending portfolio.


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Construct and Construction Draw Software – How to Automate Loans

By | Blog

What is Construction Draw Software?

Construction Draw Software is a construction management software that helps lenders and contractors to automate the whole construction loan management. It can be used to manage the procurement process, plan and track the project, generate reports, and much more.

Construction Draw Software can help you track your project and even speed up the process. This is done by generating reports on the status of your project, setting automatic alerts and notifications, and having access to your loan information securely, from anywhere.

What is a Draw Request?

A draw request normally consists of several sets of documents including budgets, receipts, and lien releases. These are submitted by the contractor or developer to the lending institution. Draw requests are common and normally set on a schedule. What makes the draw request process slow is the amount of back and forth communication it takes. More and more banks are turning to construction loan automation technology to speed up this slow process and get draw requests approved days earlier. Lenders also love having all documents in one place where all parties can see what has and hasn’t been submitted or requested. 

Construction Contractor’s Perspective on Draw Process

Construction contractors’ can find the draw tedious and time-consuming. The draw process is necessary for both the contractor and the lender. Most draw requests require several hours of work on behalf of the developer or contractor. Gathering all these documents, receipts, and lien releases and then sending them securely to the loan officer can be difficult and time consuming. Then imagine having to find that email or those documents later! 

Borrower satisfaction is one of the biggest benefits of using Construct Draw Software like Construct. Developers, Inspectors, and Borrowers can all submit draw request information to the lender securely and instantly, from anywhere, even from the construction site.

Loan Officer’s Perspective on Draw Process

The automated draw process is a boom for loan officers. It saves them time and effort, while also providing a more accurate and streamlined process. Having all loan and draw request information in one place, accessible from anywhere, even at home or on your phone, is a huge time savings. Not to mention, having custom reporting makes audits and reviews much easier. Lenders can even set up notifications or limits on draw requests so they will be notified as soon as a request is made.

Construction Draw Process managed by Construct

Construct is a construction loan management software that automates the construction draw process. It helps contractors and developers to manage their project budgets, track their expenses, submit draws quickly, and generate reports.

The software allows users to create new projects, add tasks, set up auto alerts, overfunding alerts, assign payments and generate reports. It also comes with an in-built reporting system that provides insights into the project progress at every stage of the process.

Optimize your construction draw process with automation

Construction loans are a complicated process, and it is crucial to have an efficient system in place. Construct can help lenders and banks minimize errors and control the loan process more efficiently.

The construction draw process can be managed more efficiently with automation. Imagine getting an alert that a project is overfunded, before it becomes a risk. Imagine being able to look at your entire construction loan portfolio in one place, and run reports on any aspect of every project. There are 160 banks today already using this software to do just that! 


Ditching Your Construction Loan Spreadsheet with Construct

By | Blog

What is a Construction Loan Spreadsheet and Why Would You Want to Ditch it?

Construction loan spreadsheets are not only difficult to maintain but also time-consuming. With the help of construction loan automation software like Construct, you can ditch your spreadsheet, streamline your lending process, and get back to focusing on other business.

There are some drawbacks with the manual construction loan spreadsheet process that make it worth considering an upgrade to modern solutions like construction loan automation software.

Construction loan spreadsheets are not the most efficient way to track finances. This can lead to a lot of errors and costly mistakes being made. They also lack some critical features that make managing finances more difficult, such as custom reporting features and draw import features, which are critical for any construction lending institution. Construct, construction loan automation software has been developed to provide lenders with the tools they need to manage all of their loans portfolios efficiently.

How Do I Get Rid of My Construction Loan Spreadsheet?

The manual spreadsheet process that many banks use to track construction lending is slow, with back and forth emails, phone calls, and little to no visibility for some parties. There is now an easy way to get rid of your spreadsheet. Construct is a simple, yet powerful tool that will take care of all the paperwork for you, alert stakeholders when inspections and draws have been submitted, and provide banks with reports and visibility at their fingertips, from anywhere, even while on the construction site.

Four Signs Your Bank Has Outgrown Spreadsheets

  1. Reporting takes too much time to compile and presentations are delayed
    • With Construct, customized reporting is at your fingertips and easy to download and present quickly.
  2. Difficulty consolidating data from multiple lenders and divisions within your bank
    • Construction Loan Software allows all stakeholders to have access to one system.
  3. Errors from too many versions manually collected, prepared, and shared
    • Construct’s automatic calculations and overfunding alerts keep all stakeholders on the same page.
  4. Inability to collaborate yields inefficiency and limited visibility without your organization
    • Construct’s automatic notifications help lenders close faster, increasing staff efficiency and project time

Improve the Borrower Experience

Lenders today are not only looking for efficiency for themselves, they’re looking for ways to keep and attract their best customers. Improving the borrower experience is one of those key ways that banks are maintaining and expanding their lending network. Many borrowers have reported an increase in satisfaction after using construction automation software.

Having the ability to submit an inspection or progress report from the worksite helps borrowers and builders increase their own organization and efficiency. Automatic notifications decrease the number of emails and phone calls needed to keep up with a loan, freeing up more time for borrowers to complete other tasks. Borrowers also appreciate having the ability to check the status of requests from anywhere, on any device, and not having to wait for an email or call to be returned.

Increase Efficiency with Construct

Whether you’re an experienced lender with a huge construction portfolio or just starting to grow your construction lending portfolio, BankLabs has the tools you need to manage all types of loans. With Construct your process is streamlined and your capacity is increased with less manual work, taking days off of your cycle time and increasing your draw interest. Plus, our system will provide a higher level of service to your customers, increasing efficiency and providing a better customer experience.

Mitigate Risk with Construct

Real-time reporting, automatic alerts, and detailed audit trails keep financial institutions better informed and protected than the manual spreadsheet-based process. Spreadsheets can’t send you an alert when your loan is at risk. But Construct can! Get notices BEFORE there is a problem, instead of after.

Start Saving Money And Spend More Time Doing What Matters

Construction lending is complex, time-consuming, and costly. Our solution Construct solves these problems by providing a convenient and easy way to manage construction loans from the lender’s perspective. It eliminates the need for paperwork and manual processes involved in a construction loan, increases borrower satisfaction, and increases draw income but up to 15%. Saving time and money, and freely staff to focus on other internal needs. For many banks, this is a no brainer! 

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Loan Participation Technology

By | Blog

How do Loan Participations Work?

In today’s financial climate, banks are looking for ways to reduce risk, diversify their portfolio, increase liquidity, and remain flexible and nimble. One of the growing ways to accomplish all of these advantages is to originate and participate in loans with other institutions. There are several reasons that banks buy and sell loans, and the process benefits both parties. 

Benefits of Loan Participations

A lender can benefit from loan participations in many ways. First, they can reduce and manage risk by working with other financial institutions to fund a loan. Second, they can diversify their portfolio by investing in different types of loans. Each bank must manage their balance sheet appropriately and most even have guidelines and limits they must abide by. 

Loan Participations are beneficial for both the originator and the participants in many of the same ways:

Benefits of Loan Participations for the Originators

Originators are often looking to retain key clients. By originating a loan and seeking participants, banks can retain those key clients by being able to take on a loan above their limit. This way your best customers do not turn to a competitor to fulfill their larger loans. Other benefits include:

  • Reducing concentration risk
  • Diversifying your portfolio
  • Making more loans
  • Increasing fee income

Benefits of Loan Participations for the Participants

Oftentimes, banks are looking for ways to manage their balance sheet, by putting access funds to work. We all know that investing funds results in more return than when funds are stagnant. Other benefits include:

  • Diversifying your portfolio
  • Increase interest income
  • CRA credits

How to Get Started with Loan Participations?

Many banks start small, with lenders they’re familiar with. Some financial institutions don’t know where to begin, and do not have established trading partners. Maybe their known partners aren’t able to contribute at this time.

 That is where an online marketplace like Participate can come in handy. Not only will you be able to connect with other banks looking for trading partners, you will be able to maintain and keep track of all your documents and shares in one place. Making participations faster and easier to do.

What is Loan Participation Technology?

Loan participation technology has been around for a few years but it has become more popular in recent years as lenders have begun using it more often with the rise of online lending platforms. The old manual process of mailing documents back and forth had formerly driven many banks to avoid the process entirely.

Loan participation technology has had a huge surge recently, with more banks looking for new trading partners than ever before. 

Loan participation software assists in all aspects of the loan process, from origination to servicing. It provides a centralized system to manage loan applications and approvals, while it also manages risk and compliance. 

What to look for in a Loan Participation Technology Tool

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The right loan participation technology connects banks with new trading partners and provides e-signature capabilities and other efficiency tools.

Users are able to choose the terms and conditions of their loans, the amount they want to invest, and other factors. Look for a tool that takes care of your NDA’s and non-compete agreements. As this will save you weeks of back and forth emails and phone calls.

The right tool will increase bank efficiency, cutting weeks off of the traditional slow participation process, giving your bank the additional liquidity and flexibility needed to maximize profits.

BankLabs has created a new way to revolutionize the traditionally slow participation process with Participate, a simple project management system that empowers users to self-serve and submit, track, and follow up on their data requests.

How You Can Start Using Participate: Loan Participation Technology

Participate is a revolutionary new platform that allows lenders to participate in peer-to-peer loans. With Participate, banks  with loans to sell can connect banks that are looking for loans to buy, and our automated platform makes participations faster and easier to do. 

Best of all, Participate is free for downstream buyers.

Participate is the best way to manage all of your participations. Whether you’re looking to buy or sell a participation, you’ll be able to manage it on Participate. With over 250 banks on the platform today, our customer base is growing weekly, and we’re always adding new features to make it easier for you to manage your participations.

Participate is a secure and efficient way to digitize and share loan info, documents, and automate workflow for originators, participants and lenders.