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Why Are Small Business Lenders Outsourcing Lending Application Processing?

By August 25, 2022March 18th, 2024No Comments
Outsourcing Lending Application Processing Business Lenders Blog

The COVID-19 pandemic, shutdowns, and economic challenges have caused staffing shortfall for lenders worldwide. This affected their ability to process loan applications promptly. Currently, personnel shortages and inflation are a problem for many small lenders.

Processing loan applications take a lot of time. The longer it takes, the fewer applications one can process and the less money they make. 

Moreover, prolonged onboarding time driven by paper-intensive procedures, unstructured risk assessment, credit approvals, loan renewals, manually managing regulatory policies, inefficient loan origination procedures, etc., can make lending application processing challenging.   

Thus, outsourcing the lending application processing to an outsourcing company can provide many benefits, including cost savings, faster turnaround times, and better customer service.

Why do small business lenders outsource lending application processing?

Small business lenders outsource lending application processing due to following reasons:

1. Reduce Application Processing Cycle Time

Speed and Efficiency

Small lenders often outsource their application processing because they have a lot of applications to process and need to focus on core loan processing operations. Outsourcing the application processing helps them reduce the application processing cycle time. 

For small lenders, reducing the time spent processing applications leads to increased profitability and improved customer service.  

Lenders can get help from reputable BPO service companies like ARDEM in giving their customers value. With Data Capture & Extraction solutions, ARDEM provides automation technologies for your loan application procedures. They guarantee 99.7% accurate data extraction & data entry.

2. Focusing on Core Loan Processing Operations

Accurate Data Entry Goals

Small lenders can focus their attention on their core business operations by outsourcing the processing of application forms. Lenders can increase efficiency, productivity, and accuracy when they focus on their core competencies.  

In addition, outsourcing reduces the likelihood of errors occurring when a lender performs various manual tasks.

3. Lower Operation Costs

By outsourcing loan application processing, small businesses save money on operational expenses.  

Instead of hiring additional staff to handle application processing, small business lenders can hire experts who specialize in the industry. These experts can provide specialized training and guidance to small business owners, helping them streamline their processes and reduce errors. 

Alternative lenders can utilize their expertise and technological resources to save time and money with ARDEM’s Alternative Lending Outsourcing Services. With our help, you may enhance productivity, shorten application processing cycles, and scale up quickly.

4. Access to the Latest Technology

Outsourcing application processing enables small business lenders to stay current with the latest technology. To automate procedures and boost productivity, lenders might make use of the most recent software tools and technology. 

With cutting-edge technology and market knowledge, ARDEM develops highly competitive services that enable clients to focus on running their businesses, which is their area of competence. Automate the processes involved in loan applications using ARDEM Automation.

5. Gain a Competitive Advantage

Small lenders who outsource application processing can benefit from the competitive advantages of working with a reliable outsourcing company.  

Smaller lenders generally lack the resources to hire experts to perform some tasks, making them dependent on external assistance. By outsourcing application processing to a vendor specializing in the task, lenders can get a head start on their competitors while maintaining the highest level of quality.

6. Access to Top Expertise

Discover how ARDEM builds high performance remote teams for successful celebrations.

Outsourcing application gives small lenders access to top expertise. Lenders who outsource application processing get access to the best experts in the industry.


Outsourcing the loan application process has become essential for lenders to shift their focus from tedious processes and time-consuming tasks to developing their business, funding loans, and improving customer experience.

ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs.  For more information please reach out to us  at or call us at 908-359-2600.