Right now, most commercial real estate lenders are still using outdated technology that has been around longer than the internet. Obviously, much has changed in the rest of the world since these lending programs came into being. Many of the challenges facing commercial lending today could be resolved with the use of modern technology.
Currently, the commercial lending process takes an average of 3 months to complete. The borrower chooses the real estate they’re interested in and they identify their lending needs. Then the broker contacts several lenders to find the best deal. The lender then begins the months-long due diligence process. The result is wasted time and money, missed opportunities for lenders, and frustrated borrowers who rarely get the deal they wanted.
Integrating new technologies will benefit everyone involved, and 99% of lenders agree. With the right programs, all of the information could be conveniently located in one place so there’s no time wasted chasing down missing information. Lenders could instantly update loan criteria as needed. Digitally processed bids and negotiations would help everyone agree on a deal much more efficiently.
Commercial real estate needs a serious upgrade in order for traditional banks to stay in the running.
Infographic by: financelobby