Why Your MCA Business Needs MCA SoftwareMay 16, 2023
- 1. Reasons Your Business Should Deploy An MCA Lending Tool
- 2. Better Customer Experience & Retention
- 3. Enhanced Lead Management
- 4. Get Access To Better Reporting And Analytics
- 5. Faster Underwriting
- 6. Seamless Integration And Collaboration
- 7. Compliance And Security
- 8. Cost-Effective Solution
- 9. Conclusion
It’s not uncommon for MCA lenders to drown in the sea of borrower data while checking their creditworthiness. From financial statements and credit reports to bank transaction records, the sheer volume of information could be overwhelming to deal with.
Even according to a report, businesses spend an average of 120 working days per year on administrative tasks, which accounts for 5% of the total manpower.
That’s where SaaS software comes into the scene. This tool will help you streamline your lending business by automating a majority of tasks and by eliminating the tedious paperwork.
Here is an insightful detail about the endless potential of this tool which would benefit your MCA lending business. Keep reading for more.
Reasons Your Business Should Deploy An MCA Lending Tool
A MCA software integrates an array of tools to streamline the loan sanctioning process enabling you to make faster and more accurate lending decisions.
Here is why you need the tool to you maximize your ROI:
Enhanced Lead Management
Generating and managing leads is the most crucial to the success of your SMB lending business. But manually managing leads can be time-consuming and prone to errors.
But an MCA software can track and manage leads from multiple sources like your website, social media, and email campaigns.
Besides, it can automate processes like lead capturing, tracking, and follow-up so that you can focus on high-quality leads and allow your sales team to focus on more promising prospects.
A study shows that businesses that automate lead management experience a 10% or more increase in revenue.
Get Access To Better Reporting And Analytics
The MCA industry relies heavily on data. Without crude analytics, you can’t make a well-calculated decision, and that’s why you need an MCA tool.
The software empowers you with a comprehensive view of an applicant’s financial health through integration with various data sources.
Additionally, by utilizing insights and analytics, companies can identify current trends in the industry and monitor loan performance and loan recovery rates with just a few clicks.
In fact, some reports say that lenders who adopted data analytics software significantly improved their loan performance.
Underwriting is the most critical step in MCA lending. In this stage, thorough evaluation and risk assessment are performed to determine the eligibility of the applicants.
Traditional underwriting processes are labor-intensive, time-consuming, and risk-prone. But an MCA tool can bring a huge difference by speeding up the loan approval process and saving up to 50% assessment time.
But please note that relying on an underwriting software 100% isn’t recommended as the tool can only review applications against the set guidelines. Therefore, most MCA companies opt for a hybrid model.
Seamless Integration And Collaboration
SaaS software offers better integration and collaboration flexibility to meet your evolving needs. It has the ability to integrate with various third-party platforms and tools, eliminating the need for manual data entry and enabling smooth data exchange.
Its cloud-based infrastructure lets you accommodate higher loan volumes and expand into new markets. The system is flexible enough to adapt to the changing marketing dynamics without worrying about expensive upgrades or hardware limitations.
Compliance And Security
Maintaining compliance with regulatory requirements is crucial for the lending industry. This business is subjected to various regulatory restrictions, including Anti-Money Laundering (AML), Know Your Customer (KYC), and consumer protection rules.
Also, safeguarding customer data and protecting it from security breaches is important to build trust with your borrowers. Failing can lead to severe penalties, legal disputes, and damage to your reputation.
The lending software provides built-in compliance features to ensure adherence to regulatory guidelines. It verifies borrower information, conducts background checks, and monitors transactions for any suspicious transactions.
Unlike traditional software solutions, a SaaS MCA tool eliminates the need for costly maintenance. Since it’s hosted in the cloud, the provider handles all the updates, bug fixes, and software upgrades.
There are no additional expenses like maintaining and managing software infrastructure. The best part is it’s extremely easy to run lending software.
Since it has a simple interface, even people with limited technical knowledge can easily maneuver through the system. It ultimately saves time, reduces the chances of errors, and eliminates repetitive tasks to minimize expenses.
Better Customer Experience & Retention
SaaS lending software includes tools to deliver a seamless and user-friendly experience. It has an intuitive online application process where borrowers can submit applications with ease. It drastically reduces the response time and answers customers’ basic queries instantly.
Even a study proves that 86% of customers are willing to pay more for a better customer experience, and 32% walk away from bad and delayed responses.
Additionally, it can provide you with data on customer behavior, such as their payment history and loan performance. This means you can identify customers at risk of defaulting on their loans and take steps to prevent that from happening.
Hence, it’s time to leverage the MCA lending software to make your borrowers stay by addressing their concerns and providing them with better service.
Implementing MCA lending software is like unlocking the door to a new era of efficiency, growth, and affordability for your MCA business. By having this software at your disposal, you can focus on what truly matters, which is serving your borrowers and expanding your business.
Moreover, the tool gives you a competitive edge as you navigate through the ever-changing landscape of the lending industry to keep up with the new trends.