In the world of commercial finance, "time kills all deals." Every day a loan application sits in underwriting is a day your competitor can swoop in and steal the client. For borrowers—whether they are SMEs needing working capital or developers closing on a property—speed is often more valuable than a slightly lower interest rate.
Yet, the average turnaround time (TAT) for a commercial loan in traditional banks can still drag on for 4 to 8 weeks. Why? Because of disconnected systems, manual data entry, and endless email chains. Commercial lending software is the cure for this sluggishness. Here is how modern platforms are slashing TAT from weeks to days.
1. Kill the PDF Application
The first bottleneck is the application itself. Sending a 20-page PDF form to a client, having them print, fill, scan, and email it back is archaic. It leads to illegible handwriting and missing fields, triggering a "ping-pong" of emails.
Modern software replaces this with a Smart Digital Portal. The borrower logs in and fills out a dynamic web form. If they select "Real Estate" as collateral, the system automatically asks for the property address. If they select "Equipment," it asks for the serial number. This ensures the application is 100% complete ("In Good Order") the moment it hits your system.
2. Automated Knock-Out Rules
Why spend three days analyzing a deal that you were never going to approve anyway? A significant portion of TAT is wasted on unqualified leads.
Your loan origination system should have automated "Knock-Out" rules running in the background. Does the borrower have a bankruptcy in the last 2 years? Is the business in a prohibited industry? The system can auto-decline these applications instantly, freeing your underwriters to focus only on viable deals.
3. Instant Data Enrichment (KYC/KYB)
Verifying a business entity manually involves visiting multiple government websites (Secretary of State, OFAC lists, etc.). This manual hunting takes hours per file.
API-driven software automates this via Data Enrichment. You type in the business name, and the system instantly pulls:
- Official registered address.
- List of directors and owners.
- UCC filings and liens.
- Adverse media checks.
What took 4 hours now takes 4 seconds.
4. Parallel Processing
In legacy workflows, steps happen sequentially: Credit waits for Legal, Legal waits for Valuation. It's a relay race where everyone drops the baton.
Modern platforms enable Parallel Processing. As soon as the term sheet is signed, the system can simultaneously:
- Order the appraisal.
- Trigger the environmental report.
- Notify outside counsel to draft documents.
By running these workstreams concurrently, you can compress the timeline significantly.
5. Electronic Closing
The "closing table" is becoming a metaphor. Requiring all parties to be physically present to sign wet-ink documents is a logistical nightmare that delays funding.
With integrated e-signature and digital vaulting capabilities, commercial deals can be closed remotely. Secure digital rooms allow all parties to review and sign documents from their offices, reducing the closing phase from days to hours.
"Reducing turnaround time isn't about skipping steps; it's about removing the friction between them. Fast lending is efficient lending."
Conclusion
Speed is the ultimate differentiator in 2026. Lenders who leverage technology to reduce turnaround time will win the best clients and build the strongest portfolios.
Stop letting manual processes slow you down. See how Lendisys's commercial lending software can accelerate your deal flow today.