This post is the second in the four-part series: Address Origination Challenges with Salesforce. The series discusses strategies to optimize the intake, application, underwriting and closing stages of loan origination using Salesforce. In this post, we will highlight how Craftsman leverages Salesforce to help its CDFI clients manage the application process and overcome common origination challenges.  

Application Challenge #1: Accessing Information

How can CDFIs access applicant data as quickly, easily and securely as possible?

• Application Data. In this day and age online applications are the norm, not the exception. Salesforce enables seamless and secure online applications via third party applications such as FormAssembly. Online forms are tailored to a CDFI’s application process, can have prefilled fields based on prequalification data, and are designed to be mobile friendly. Upon submission, data from the applicant is instantaneously passed into Salesforce. Community Loan Fund, a CDFI based in New Hampshire, encourages local entrepreneurs to apply in this manner. 
• Credit Report Data. Using a third party application called Laser Credit, credit reports can be automatically or manually pulled in Salesforce (with applicant permission). Users can save the effort of manually re-entering applicant data into another system to pull the report, and also instantaneously access credit report data in Salesforce. Craftsman client Working Solutions has benefited from this seamless integration by using that information for risk analysis and decision-making. 

Application Challenge #2: Document Collection + Management

How can Community Development organizations quickly and securely collect supporting documents?

• Document Transfer. Using FormAssembly, Craftsman has enabled Community Development organizations such as Hebrew Free Loan Society an easy and secure means by which applicants can upload documents of multiple types (PDFs, Spreadsheets, Word Files, etc.) while applying for an interest-free loan. Upon submission the files are automatically saved in Salesforce on the appropriate record. Uploading files can be set as required or optional on the application.
• Required Checklists. Craftsman created a module called Required Checklists (formerly known as Required Document List, or RDL) that allows CDFIs to comprehensively track which documents or tasks have been requested, received or reviewed. Different checklists can be configured for any loan type, application stage, or status. Craftsman CDFI client Invest Detroit, a CDFI focused on igniting economic growth for all Detroiters, leverages this functionality to keep track of documents required from applicants in each stage of the origination process.

Application Challenge #3: Streamlining Workflows

How can a Community Development organization streamline their overall loan origination process, and thereby manage their pipeline as effectively as possible? 

• Streamlined Workflows. Combining Salesforce workflow Paths with queue management, Craftsman has built streamlined processes for our loan origination clients. This solution ensures that applicants can move quickly from one stage or sub-stage to the next, and that it is clear who is responsible for the application at any given moment. Automated approval processes enable more efficient handoff between approval authorities. This process efficiency removes the need to track loan applications in spreadsheets and clutter email inboxes with application updates; all communication is centralized in one system.
• Tracking Application Outcomes. Craftsman has found that separating the stage of the loan application from its status enables better outcome tracking. Specifically, the stage defines where the application is in the process (for example, whether it is in Intake, Application or Underwriting), while status indicates the current state of the application (whether it is actively moving along, inactive, withdrawn or declined). This configuration allows CDFIs to track if an application was withdrawn, as well as when in the process the withdrawal happened. With this structure Craftsman has built reports and dashboards for clients that track key performance indicators around the application process such as volume, length of time, drop-off points, and regional performance. 
• Payment of Origination Fees. Many Community Development organizations charge origination fees, such as application fees. Craftsman helped Working Solutions integrate Stripe into their Form Assembly application form. Once the fee is paid through Stripe, Working Solutions can view the payment and application information directly in Salesforce. 

Application Challenge #4: Tracking Critical Services

How can Community Development organizations more easily track important critical services other than lending, such as technical assistance, credit counseling and business referrals?

• Tracking Critical Services. Commercial lending solutions traditionally do not have the functionality to track the diverse services that community development organizations offer. Salesforce can be configured to meet this need, customized specifically to track the desired metrics. For example, the Entrepreneur Fund, which partners with small businesses in Minnesota and Wisconsin, is using Salesforce to track its business consulting and technical assistance services.

Summary + Conclusion

Creating an effective application process is critical to a community development organization’s success. A complete application depends on the ease for applicants to share information and documents. Using Salesforce, Craftsman clients have been able to streamline this process for internal users and applicants by simplifying data and document collection, building efficient workflows and effectively capturing other critical services such as business consulting/technical assistance. 

The next blog in this series will explore how Salesforce has been used to optimize the risk analysis and approval processes inherent in the underwriting stage. Contact us for more information on Salesforce for CDFIs.