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If you are in the market for loan servicing software (commonly called loan origination software), you have probably realized there are a lot of options, and each product has different features and benefits.

A loan origination system is a key part of an effective and successful lending program.  At origination, loan servicing software streamlines customer data collection, analysis and risk evaluation.

As a software company, we spend a lot of time with potential clients helping them assess their business needs in order to ensure our loan management software, Ventures+, is the right match.  Once on board, our customer service team helps them maximize the value they get from our products.

In order to find the right match for your organization, it is best to start with identifying your needs and the functionality that will bring efficiency to your process. This is a critical step, as a small community lender with a single office will have vastly different needs than a national bank with multiple offices and branches.  

With so many solutions, the task to find the software to best serve your needs can be daunting.  With that in mind, we have curated a list of software options that include a brief summary along with pros and cons of each. 

The systems below cover needs ranging from SBA loan software to commercial and community lending.  Use this list to help narrow down the choices for your organization and then do your research by talking to the vendors.  You will want to find the loan origination software that matches your current and future needs.

How to choose the right loan origination software

Loan origination software automates the process for a lender whether they are a single business or have a large staff with multiple branches.

It is important to know what your priorities are for your loan origination system. Many of the loan servicing software products can reduce operational costs and improve time-to-funding. You will find that some platforms only automate a part of the process and are best for a specific lending model. Here are some key questions to ask about any loan origination software you are considering:

  • What is the security protocol that the loan origination software uses?
  • How often do you do software updates?
  • Does your loan origination system provide full process automation?
  • What is the list of third party integrations? 
  • How does the pricing plan work?
  • Do you have a demo?
  • Is there a way to do a test drive of the platform?

When you consider the differences between the needs of a community lender and a large bank,  you can start to see how their needs, while similar, are also very different. The bank might be looking for software to run their entire customer facing business which probably includes deposit accounts with electronic and cash deposits. A community lender may be looking for a loan software system that specializes in SBA lending.

As you will see below, loan origination software comes in all kinds of different shapes and sizes.  The comparison below can help you get a clearer picture of your needs and the opportunities loan management software can offer your business.

 


Loan Origination Software Comparison


 

Ventures

Ventures Lending Technologies offers state-of-the-art loan origination solutions in it’s cloud-based premiere product, Ventures+.  Already the top resource of the CDC industry, Ventures+ now serves 7a, CDFI and regional bank lenders along with Lender Service Providers. To date, our user base processed over 8 billion dollars in PPP loan fundings. 

With their Build Your Experience platform, you customize your system with the modules and integrations you need.  The three newest modules bring even more ease to loan management allowing you to manage everything in one place. 

Payments+ helps you process payments, generate investor and 1502 reports and more. DocStorage+ provides easy access to all documents in a secure environment. 

And, launching soon, Apply+, is a borrower application portal that captures key details right from the start of the loan process. Ventures+ also has a robust reporting system that includes both easy to use template reports and the ability to generate custom reports.

Ventures+ helps lenders reduce costs and streamline the loan servicing process because it offers one solution for the entire loan life cycle.  From lead tracking to management to underwriting to servicing, Ventures+ is a platform designed to help you manage and grow your portfolio.

When working with Ventures Lending Technologies, you receive outstanding customer service and a product that continues to evolve to support your business. 

 

Who it’s best for

SBA lenders, CDFIs, CDCs, Regional Banks and Lender Service Providers

+ Pros

  • Manage the entire loan process in one place
  • Top resource of the CDC industry – SBA 504 lending
  • Customer support team is second to none
  • Customizable system so you have the modules and integrations you need
  • Affordable
  • Deep knowledge and relationship with SBA
  • Cloud-based
  • Continuously adding new features to meet the clients needs
  • Superior E-tran integration 
  • Strong security protocols

Cons

  • Not a good fit for large banks

 

PCFS

PCFS is a software provider with a history of providing services to SBA lenders. Their software is designed around making complicated SBA lending easier for the lender participating in SBA 7(a) type loans. PCFS helps commercial lenders manage their workflow and information with modules that manage the loan process and they give lenders insight into their processes with a robust reporting system.

 

Who it’s best for

Lenders participating in SBA 7(a)

+ Pros 

  • Long history of successful relationships with lenders
  • End to end solution
  • Risk management and compliance management options

Cons 

  • No support for SBA 504

 

Laser Pro

Laser Pro is one of the standard options used in the banking industry to originate, document and close loan applications. They support both consumer and commercial lending and they support generating loan documentation regardless in which state the transaction is occurring. They have a network of attorneys across the country that maintains their documents and data collection needs and provide automatic regulatory and compliance updates.

 

Who it’s best for

Lenders operating in multiple states

+ Pros

  • 50 state loan documentation solution
  • Consistent documents across your whole organization
  • One of the original document preparation software solutions

Cons

  • User Interface has not been updated
  • No cloud option – hosted on premises
  • No SBA 504 support

 

Novatraq

Novatraq has a modern, cloud based system for managing commercial lending, including an integration to SBA E-Tran for 7(a) lending. Their system manages the lending process from application through funding. They have a modern user interface and an interactive portal that allows borrowers and referral sources to participate in the process in a secure way. In the last 15 years, Novatraq has processed more than $2 billion in small business loans.

Who it’s best for

Lenders needing a SBA 7(a) solution but not 504

+ Pros

  • Modern user interface
  • Intentional efficiency with smaller loans

Cons

  • No SBA 504 support
  • No servicing functionality

 

nCino

nCino has a complete banking system and describe themselves as, “The world leader in cloud banking.” Like the other systems we have been talking about, they can manage the commercial and consumer loan process from application to servicing. Additionally their product can manage many of the other needs a traditional bank would have, including deposit account management. However, they are not a good fit if you want a loan origination software to do SBA 504 loans.

 

Who it’s best for

Banks wanting a comprehensive system for operations

+ Pros

  • Comprehensive support for traditional bank needs
  • Large list of well-known clients

Cons

  • No SBA 504 support
  • Intended for banks

 

BMI

BMI offers solutions that can assist in your loan processing pipeline. They offer a document management system. They can harvest data online from applicants or other types of users and import into the system you use to manage issuing your loans. They also offer a tax return reader that parses tax returns and returns the data to your system in a usable format. These services can save you time and money but they are typically uses as add-ons to the systems lenders use to process, fund and service their loans.

 

Who it’s best for

Lenders needing specific functionality to complement their current system

+ Pros

  • Customizable
  • Compatible with several loan processing systems

Cons

  • Not a comprehensive loan management system

 

Down Home

Downhome Loan Manager is loan servicing software made specifically for not-for-profit, community lenders. They offer a base system with modular add-ons to provide the functionality you need. CDFIs and the myriad of loan variations they produce often choose Downhome for their servicing needs as they are known for being affordable while also providing CDFI specific reporting functionality.

 

Who it’s best for

CDFIs needing a servicing solution for their loans.

+ Pros

  • Functionality for CDFIs is deep
  • Modern user interface
  • Modern API

Cons

  • Platform is for servicing only
  • Not an end to end solution

 

Spark

Spark has a configurable system loan origination software that minimizes the complexity of managing the smaller business loan processes. The high lever offerings they provide are targeted at banks, lender service providers and mission driven lenders. They are integrated to SBA E-Tran for 7(a) loan programs.

 

Who it’s best for

Lenders not operating in the SBA space

+ Pros

  • Customizable system
  • Modern interface

Cons

  • No SBA 504 support
  • Sometimes customization can be complicated

 

Sageworks

Sageworks Lending Software makes gathering and entering data easy. They have the ability to auto-decision certain loans defined by a lender’s policy which gives loan officers and credit analysts more time to do the more focused parts of their jobs. Sageworks provides an integrated CRM that gives the lender insight into potential sales opportunities and what might be coming later. 

+ Pros

  • Improves overall borrower experience
  • Scalable
  • Enforce consistent loan policies

Cons

  • No SBA 504 support

 

Mortgage Office

The Mortgage Office offers loan management software solutions geared towards comprehensive support of loan origination through servicing needs for many types of lenders. They have a modular based system that allows a lender to customize the product in specific ways while leaving out what they don’t need. Their hosting options include on premise, cloud software as a service or cloud hosted models. 

 

Who it’s best for

Lenders not operating in the SBA space

+ Pros

  • Multiple hosting options 
  • Available online borrower portal
  • API

Cons

  • No support for SBA 504 or 7(a)

Conclusion

Although there are many loan origination software options, once you compare the various loan software systems, you will be closer to finding the right solution. 

Ventures+ stands out as a cloud-based end to end solution.  If you would like to learn more about the platform and to see a demo, please reach out to info@venturesgo.com.

We would love to talk to you and get to know your organization so we can help you better understand how loan management software can better your business.

 


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