Streamline Commercial Loan Origination
Commercial loan processing is the process of evaluating, approving, and disbursing a commercial loan. This typically involves several key steps, including collecting and reviewing the borrower's financial and personal information, evaluating the borrower's creditworthiness, and determining the terms and conditions of the loan.
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The commercial loan processing process begins when a borrower applies for a loan. The borrower typically provides information about themselves and their business, such as their financial statements, tax returns, and business plan. This information is then used by the lender to evaluate the borrower's creditworthiness and determine whether they are a good credit risk.
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If the borrower is approved for the loan, the lender will then determine the terms and conditions of the loan, such as the interest rate, loan amount, and repayment schedule. Once these terms have been agreed upon, the lender will generate the necessary loan documents, such as the promissory note and loan agreement.
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Once the loan documents have been signed by the borrower and the lender, the loan is disbursed. The lender will typically transfer the loan proceeds to the borrower's account, and the borrower can then use the funds for their intended purpose, such as purchasing inventory or equipment.
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Overall, commercial loan processing is an important part of the lending process, as it helps ensure that loans are made to borrowers who are likely to be able to repay them. By carefully evaluating and approving commercial loans, lenders can help protect their investments and reduce the risk of losses.
What are the steps involved in processing commercial loan?
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The steps involved in processing a commercial loan typically include:
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Collecting and reviewing the borrower's financial and personal information. This might include the borrower's financial statements, tax returns, and business plan, as well as information about the borrower's credit history and personal finances.
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Evaluating the borrower's creditworthiness. This involves using the information collected in step 1 to determine whether the borrower is a good credit risk, and whether they are likely to be able to repay the loan.
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Determining the terms and conditions of the loan. This might include the interest rate, loan amount, and repayment schedule.
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Generating the necessary loan documents. This typically includes the promissory note and loan agreement, which outline the terms and conditions of the loan and must be signed by the borrower and the lender.
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Disbursing the loan. Once the loan documents have been signed, the lender will typically transfer the loan proceeds to the borrower's account, and the borrower can then use the funds for their intended purpose.
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Overall, these are the key steps involved in processing a commercial loan. The specific steps and details may vary depending on the individual loan and the lender's requirements.
Streamlining Loan Origination ensures your team can make better decisions, faster with automated document collection and reminders as well as ongoing loan management. Loan Origination is an important part of managing borrowers financial and reporting documents for loan monitoring. Almost 70% of banks still rely on some combination of spreadsheets, core ticklers, or other manual processes.
BankStride is a digital banking platform you've been waiting for. BankStride makes it easy for banks to automate loan documents, exceptions tracking, loan reporting and covenant monitoring. No more managing checklists, searching for files in emails, or waiting on updates from other parties. Just create your requests and let BankStride do the work for you.
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Many Banks and lending companies depend on non-public client information to provide their
services. Examples include:
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Automate Document Gathering
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Checklist For Loan Reporting Requirements
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Frictionless Customer Experience To Send Documents
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Create Credit Exceptions & Tickler Tracking
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Automated Loan Monitoring and Loan Compliance
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Loan Reporting, Risk & Financial Reporting
Without a dedicated tool, professionals would have to manually manage checklists and calendar
events to keep track of all required information. BankStride automates this work while improving
security and reporting.
Why BankStride platform
BankStride is a web-based software solution for commercial banks and credit unions that works with customers to manage loan agreements and eliminate credit exceptions. FileStride improves credit exception management by reaching beyond the walls of the bank to work directly with customers.
Customers respond to information requests much like paying an online invoice – they clearly see what’s required of them and they act. Customers can respond using a login-less portal or by email – no account or password required.
With BankStride, banking teams can schedule recurring requests for documents like financial statements and tax returns, compare actual and threshold covenant values (e.g. minimum DSCR), and send compliance certificates for signature via DocuSign.
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BankStride is like autopay for customer information.
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How does this help banks
Banks that pursue superb loan agreement management are faced with handling complex recurring tasks using the basic tools of email, spreadsheets, and calendar ticklers. Banks that let this work fall behind risk delaying their awareness of problematic loans or operating practices, jeopardizing capital and reputation.​
A borrower’s risk profile can change significantly over the years that follow a lending event. Managing loan agreement adherence through reporting and internal monitoring is an ongoing and tedious battle for banks.
With BankStride, banks gain high-resolution loan agreement monitoring that saves time and delights customers.
How does our bank customer use BankStride
For example, BankStride has proven effective in managing revolving lines of credit. BankStride automatically requests and reminds customers to submit monthly AR and AP listings, inventory analyses, and borrowing base certificates each month.
BankStride reminds the banking team to test various financial ratios. The results of the customer’s actions and the ratio testing all roll up to per-banker and per-office reports that can be run on-demand in seconds.
Our bank customer uses BankStride to schedule and automate the activities required to monitor loan agreements.
​Benefits of Using BankStride for
Covenant Monitoring
Risk Mitigation: By providing real-time alerts and comprehensive monitoring, BankStride helps mitigate the risk of covenant breaches and financial penalties.
Accuracy: Integration with financial systems ensures that the data used for covenant calculations is accurate and up-to-date, reducing the risk of errors.
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Efficiency: The automation of data extraction, monitoring, and reporting streamlines the covenant management process, saving time and resources.
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Enhanced Compliance: BankStride ensures that all covenant requirements are met, maintaining compliance with loan agreements and fostering strong lender relationships.
BankStride is powerful for bankers
Flexible information management
BankStride supports one-off and recurring information requests with flexible storage layer configuration options.​
Healthcare & Life Sciences
Bank leadership can drill down to identify pockets of risk and underperformance, ensuring every team member knows where to focus.​
Loan Monitoring
Track financial reporting, covenants, and certificates, and issue compliance certificates for signature via DocuSign.​
A Clear Banker's View
See your portal in action.
Easy for bank customers
No usernames and no passwords
Customers receive tokenized links for portal access, and bankers can request information from anyone with an email address.
Upload or email
Easy-to-use customer portals show exactly what is needed, while email-based file ingestion lets customers respond by emailing files.
Timely alerts
Reminders and alerts are aggregated to prevent information overload, can be toggled per user, and feature customizable schedules.
A Clear Customer's View
See your portal in action.
Know what you have, know what you need.
BANKERS STREAMLINE LOAN REPORTING DOCUMENTS
Why BankStride?
We're the digital banking solution you've been waiting for.
We make it easy to automate your loan reporting and covenant monitoring. No more managing checklists, searching for files in emails, or waiting on updates from other parties. Just create your requests and let BankStride do the work for you.
How it works
BankStride combines checklists with cloud storage to help you communicate and monitor your information requests and documents.​
All it takes to get started:
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​Request items by creating projects for one-off items or templated lists.
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Review incoming files from your client and mark items as satisfied or complete.
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Repeat with automatically recurring requests and reminders.​
Bankstride platform features
Why do banks and customers love BankStride?
