This powerful new platform claims that it can boost your loan approvals by 500%. It’s a bold claim, definitely, but is it up to the task?
Lenflo is Australia’s first integrated, paperless, and AI-powered commercial lending platform. Designed for both borrowers and brokers, it gives borrowers access to loans by investment banks, private lenders, high net-worth investors, banks, and non-banks. It also manages commercial property loans, development finance, residential loans and SMSF loans for business borrowers, business loans, and equipment finance.
We’ve asked Andrew West and Bill Salouris from Global Capital, Lenflo’s parent company, to join us and tell us more about Lenflo.
Lenflow works across a lot of loan types and 450 lenders across Australia. It is also available to non-brokers. The platform was made to assist brokers with their clients and digitize commercial application forms.
It is the first truly digitized commercial application form in the world.
The company has been working on the commercial application form for a while. Its AI-powered pricing engine allows it to deliver indicative funding proposals with over 97% accuracy, which is no mean feat since commercial loans are much more complicated than residential loans. Commercial and private lenders typically do not have fixed pricing and instead offer risk-based guidelines on a deal-by-deal basis.
“There are more moving parts. So, for instance, we could be talking about a shopping center with, you know, 15 tenancies or 50 tenancies. We could be talking about five companies, different corporate structures, or interrelated. So, the technology can get compiled all that in, you know, one simple process while you're talking to the client.
So you wouldn't be asking the customer for information, it's all asked only once. There’s no need to go into it and throwing because Lenflo brings it all together.”
Another thing Lenflo does better is that it reduces loan application and approval times by more than 75%, with indicative funding proposals delivered in approximately 10 minutes.
The complexity of commercial lending
As we’ve mentioned before, commercial lending is more complicated than residential loans. And most of the models out there are centered around that. So Lenflo has really found themselves a niche that only a few can be successful in. So far, they’re the only ones we know of.
The Banking Royal Commission’s Report
Although the Commission’s final report has made the lending business difficult for brokers, Andrew and Bill don’t think it will have a huge impact on their business modelling as commercial lending is geared more towards the consumer top landing. They’ve actually received more inquiries and business as of late, probably because people assume that banks won’t lend to them and cannot link to them.
Global Capital sees the final report as more of an opportunity with their software as it enables them to give clients an indication of where the company sees their pricing and their funding costs sitting. Lenflo is predominantly commercial based, so they don’t really see a huge impact brought about by the Banking Royal Commission’s Report.