Listen to this articleBelow is our recent interview with Noah Grayson, CEO of South End Capital:
Q: Has South End Capital always been a technology-based loan platform?
A: I founded South End Capital in 2009 in the midst of the Great Recession, when capital was scarce and technology in the commercial real estate and business loan space was virtually non-existent. As a small, upstart loan origination platform, I discovered early on that technology could differentiate us from larger, more established lenders. I wanted to be able to effectively scale South End Capital nationwide and into what I anticipated would be, a future of digital lending.
Q: What were some of the first technologies or automations you implemented at South End Capital?
A: I realized that utilizing a cloud-based sales software that could integrate with other applications, would enable South End Capital to build a productive and efficient distributed workforce, and easily scale loan origination volume. Having limited operating capital in the early days meant that establishing brick-and-mortar locations, and hiring a costly administrative and sales team was not an option. While other lenders were still requiring applicants to mail in paperwork, we implemented one of the first online applications in the commercial loan space. Over time, we customized and integrated our sales software to enable us to issue term sheets, communicate with clients, receive documentation, send documents for e-signature, and process almost an entire loan file securely and remotely, from start to finish.
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Q: How has COVID-19 affected the way you do business?
A: It really hasn’t changed many things. Our staff has operated remotely since inception, and we’ve always worked hard to integrate technology ahead of the curve. While other lenders were scrambling to adjust to managing a distributed workforce and process applications through automation, we already had all that in place. What we did change was to remove any existing barriers that a borrower or referral partner might have to working with us. We’ve streamlined our online application to make it shorter and more intuitive, and integrated more third-party loan programs directly into our platform to offer applicants more loan options in one place. We were one of the first loan firms to offer access to Paycheck Protection Program financing, and thousands of loan intermediaries turned to us for assistance with their clients. We realized that we needed a better way to onboard referral partners, improve their ease of access to our programs, and enable them to track their referrals. As a result, we built a custom Partner Portal that gives our referral partners all the resources they need to easily transact with us.
Q: Can you tell us more about your Partner Portal and how it has helped you scale?
A: Signing up as a referral partner with South End Capital is free and we offer competitive referral fees. Our Partner Portal allows a referral partner to register online and receive automatic approval in less than a minute. They then receive immediate access to their specific portal which includes a co-branded referral landing page, a unique referral link, 24/7 lead tracking, the ability to review processor notes and to securely upload loan documents, program guidelines, account management, and other resources. This entire onboarding process occurs automatically without any physical interaction or involvement from our staff, and integrates directly into our sales software. A referral partner that chooses to interact in the loan process can stay involved and assist. Those partners that don’t want to be involved in the loan process can easily post their unique referral link on their website, social media, in their content or email database announcements, and leverage our technology and back-office to do all the rest. Some of the largest loan marketplaces and business lenders in the country utilize South End Capital to monetize their commercial real estate and business loan leads. There is no limit to the number of referral partners we can seamlessly onboard with our Partner Portal, which enables us to receive an increasing number of loan applications, and effectively scale into the future with very little additional capital investment.
Recommended: Q: Is the entire South End Capital loan application process automated?
A: Although much of our loan process relies on technology and is automated, we also believe in the benefit of professional experience and direct client interaction. Our internal software automates certain aspects of the underwriting process, but a real person reviews each loan application and makes an informed credit decision. Our team has an average of over 20 years in commercial finance, and has an average tenure with South End Capital of over 8 years. Our referral partners and borrowers can receive live relationship support at any time, and our management team personally attends to strategic partners to foster the best possible relationships. I feel very fortunate to be able to provide our clients the best of both worlds; the latest in loan automation, and an experienced and professional support staff.
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