Nonbank lending companies of all sizes face a constant challenge of scaling operations to meet expanding needs. At a certain point, many firms turn to funding from institutional investors for growth. However, these investors come with their own set of demands, particularly regarding operational transparency, data management, and risk mitigation. Implementing a robust Loan Management System (LMS) is not just beneficial for your operations, but also essential in order to attract sizable institutional investments.

Institutional investors often require the adoption of a loan management system as a digital system of record. This shift helps assure investors of data integrity and operational transparency. They also provide essential risk-mitigation capabilities like audit trails, role-based access security, and automated backup.  An LMS is about more than storing information; it’s about creating a reliable and efficient framework for decision-making, reporting, and risk management.

Pershing Ventures, a Venture Capital fund providing venture debt and financing capital to SMEs, knew they needed to implement a loan management system early in their operations to prepare for the future. Having Hypercore as their LMS in place as they prepared for a major funding round meant they were able to provide potential investors with portfolio visibility, streamlined reporting, and most importantly, risk management. “You think about credit risk, market risk, or FX risk as key business challenges. Less obvious are the operational risks that can turn into a credit risk,” shared Pershing Ventures President, David Weiss. “Spreadsheets cause operational risk.”