The Digitization of Syndicated Loans
We find ourselves in a new age, the digital age, still executing deals as if it were the early 90’s. Digital is the main driver of the changes upending the business world. New digital software technology provides an opportunity for the secondary market within equipment finance as well as solutions unique to problems within the current syndicated loans market.
Traditional equipment leasing syndication is heavily dependent on an antiquated process for buying and selling. The deal cycle of a syndicated loan is costly and inefficient. The traditional process relies on legacy systems. Sensitive information is shared via email which is unsecure and extremely vulnerable to a security breach. All deal parties must account for the human error risk. The list goes on, but the resounding bottom line is that syndication needs to be simplified and brought up to speed to become acquainted with the 21st century and to meet the digital standard.
“The syndicated loans market is the perfect candidate for a technology upgrade.”
Making the deal process more efficient and shortening settlement times is an industry-wide goal and technology is our ticket to goal achievement. Technology has a lot to offer the syndicated loan market. It can provide benefits such as cost reduction, risk mitigation, processing time reduction, data access, visibility, secure transactions, and better-informed, faster decision making.
Much of the lending process is based on relationships and the human interaction isn’t replaceable. Technology will not erase the human interaction piece in syndicated loan transaction deals, but it can streamline interactions and reduce the amount of touchpoints within one deal. Since syndication is such a relationship-oriented business, technology is more appropriately leveraged to create more efficiencies so that more time can be spent focusing on building relationships and closing deals.
At Syndifi, we understand much of the lending process involves a relationship element, our goal is to improve the exchange of information. We’ve developed and created an online syndication platform for buyers and sellers to effectively manage the deal pipeline as opposed to relying on manual processes. Platform features function to streamline the deal process so buyers and sellers can transact more efficiently using state of the art technology.
Contact Us for more information about our platform.