Who: Colorado Lending Source
Colorado Lending Source is a not for profit, mission based lender in Denver, Colorado. Since their inception as Front Range Regional Development Corporation in 1991 they have focused their goals on job creation and making positive economic changes in the communities they serve. They received approval from the US Small Business Administration in 1991 as a Certified Development Corporation (CDC) and in 1992 they funded their first SBA 504 loan. Over time they have expanded their lending options into the SBA 7(a) and Community Advantage programs and a character based micro-loan program called Colorado Main Street. They also serve as a Lender Service Provider for other 7(a) lenders in the industry.
Problem: Is our loan management software cost-effective and current?
When the SBA evolved beyond processing loans solely on paper and exposed the E-Tran API, Colorado Lending Source was in a position that many businesses have been in the past. Do they build their own software or do they buy an off the shelf solution?
As there weren’t many commercial loan servicing software options at the time, Colorado Lending Source built their own loan management software to streamline workflow and integrate to the SBA E-Tran system. They built a functioning system that they used for nearly 10 years. But as with any loan management software product, the work is never really finished.
Given the expense of keeping developers on staff, staying current with E-Tran and newly released SBA forms, they realized that it was time to assess all of their options. They found themselves in the position of needing to decide whether to fix what they have, build something new or buy a commercial loan servicing software solution.
After ruling out fixing and maintaining their original system due to the expense, Colorado Lending Source began exploring commercial loan management software products. They needed a system that supported their end-to-end business flow. It had to originate both SBA type loans and their own, in-house products. Customizable document generation was very important. They also required a system to support their loan servicing needs once their loans were closed and funded. They found what they needed in Ventures Lending Technologies premiere product, Ventures+.
Ventures+ provided the right balance of features, cost and customer support. A key factor was that Ventures+ would allow them to transition off of their home grown system. It would be a big migration by all previous standards. Colorado Lending Source had over a decade of loan data that needed to be migrated into Ventures+. Their technology team, along with the Ventures+ support and development teams all contributed to a successful migration.
The migration negated their need to have one or more full time developers on staff which lowered their payroll costs. The feature-set of Ventures+ combined with outstanding support staff and affordable pricing allowed Colorado Lending Source to get out of the software business and focus on what they do best… mission based lending.
Result: Cost-effective and Feature Forward
It isn’t often that costs can be reduced while increasing functionality and productivity. Colorado Lending Source uses several of the available Ventures+ add-on offerings. DocStorage+ allows documents to be stored along-side the raw loan data. Payments+ enables detailed tracking of payments received on loans they service. These features still enabled them to cut their annual costs by about 50% versus keeping developers on staff.
Equally important, Colorado Lending Source can tailor the software to their needs. With the Ventures+ add-on options, they were pleased to be able to include the features they need and not pay for services they wouldn’t use.
Commiting to a software product is a big decision that can greatly impact budget, and productivity. For Colorado Lending Source, they are very happy that they chose to make the transition away from their own product to Ventures+.
As expected, across the board it is a more effective solution, they have saved money, gained functionality and streamlined workflow. Most importantly, they now know that their new partner, Ventures Lending Technologies, is providing state-of-the-art loan management software and always keeping pace with the ever-evolving lending industry.
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