Potential SVB Collapse - Highlighting the Need for Appropriate Technology in the Lending Sector

Lenders are uniquely positioned to impact their clients' financial success. Whilst this is traditionally done through the deployment of capital in the form of debt or equity; financial success can also be achieved through the use of appropriate technology. With the right software, lenders can help optimise their portfolio companies' operations and working capital. By leveraging cloud-based, AI-driven, multi-tenancy software, lenders can gain real-time insights and risk alerts across their entire portfolio and trigger recommended workflow actions, such as collection strategies and lending decisions.

Lenders are often deploying capital to cash-constrained businesses. Whilst gaining access to new capital can be transformational for these businesses, it is imperative that they are able to manage their working capital moving forward. With the right technologies, businesses can drive process efficiency to deliver key metric improvements such as DSO (Day Sales Outstanding) and cash flow optimisation.

Lenders commonly take a “nose in hands off” approach when deploying capital but we feel there is a responsibility and an opportunity for lenders to add value to the sustainable financial health of their portfolio businesses.

Here are some ways that lenders can leverage technology to achieve this:

1. Real-time insights - Through the use of multi-tenancy software, lenders can access financial data for multiple portfolio companies in real time; removing the need for manual inputs, avoiding human error and inaccurate, outdated information.
2. Reduce Risk - By leveraging data analytics, lenders can gain insights into their client's financial performance and identify potential risks before they become problematic. Advanced analytics capabilities allow lenders to assess risk accurately, enabling them to make informed lending decisions.
3. Enhance Customer Experience - By providing clients with technology alongside funding,  lenders can enhance the customer experience and build stronger relationships with their clients.
4. Improve Decision Making - By leveraging data analytics and machine learning, lenders can gain insights into their client's financial performance and identify potential areas for improvement.
5. Driving business metric improvement together - Debt management software can help businesses significantly reduce their DSO and improve their overall financial performance, enabling lenders to deploy further funding where appropriate.

In conclusion, lenders have a unique opportunity to leverage technology to not only reduce their own portfolio risk but drive value for their clients. Real-time analytics available in leading software solutions, such as Invevo enable lenders to optimise their operations, reduce risk, enhance the customer experience, improve decision-making, and increase working capital. By leveraging the right technologies, lenders can position themselves for long-term success and help their clients to achieve financial success.