Gartner defines commercial loan origination solutions (CLOSs) as software applications that enable lending institutions to manage the end-to-end process of opening lending products, from application through underwriting and closing, for businesses of different sizes. These can be consumed as on-premises software, cloud-based SaaS, integrations and API, and white-labelled solutions. CLOSs are software solutions specifically designed to facilitate the evaluation, approval, settlement, and documentation of loans for businesses. These solutions serve as a centralized platform for lenders to assess business creditworthiness, collect and analyze financial information, automate document processing, and streamline the commercial lending process. The primary purpose of CLOSs includes activities such as processing loan applications, managing risk, managing collateral, and improving operational efficiency. These solutions offer solutions to problems such as lengthy approval processes, manual data entry, complex financial analysis, and cumbersome documentation requirements.
A Loan Management System is a digital platform which assist lenders in automating and streamlining entire loan life cycle including loan servicing, reporting, customer care, syndication and customer monitoring. It acts as a centralized data storage unit which is used for retaining and managing customer information, creating new loans, and keeping a record of all financial statements for the lenders. Thus, it offers an integrated overview of all the different processes of the lending lifecycle. This unified platform also has built in analytic modules that can be utilized for providing useful analysis and insights into automating the entire loan cycle as well as comprehensive reports on the cash flow. Primarily used by banks and credit unions, it provides easily deployable and scalable integrated loan management solution to traditional paper-based method of servicing loans.