Debt investors face unique challenges when screening potential lending opportunities. With a constant influx of new opportunities, it can be time-consuming to sift through every deal that comes their way. That's why it's crucial for debt investors to streamline their screening process, so that they can focus on the opportunities that best align with their portfolio goals. In this article, we'll provide some actionable steps that debt investors can take to improve their deal screening process, free up valuable time, and increase their chances of closing the best deals.
Create a Structured and Consistent Deal Screening Process
To ensure that the team is focusing on the right deals, it's important to create a structured and consistent deal screening process that identifies the factors that can make or break a deal. Deal management software is a powerful tool that can do just that. Origin provides users the ability to templatize their approach to screening and adhere to a well-defined process, ensuring that key risks are identified early and nothing falls through the cracks. Whether that means validating the market, understanding asset performance or collecting information on the borrower, debt investors are able to move forward (or pass) with conviction.
Use Proprietary Data to Drive Screening
Every new deal that comes across a debt investor’s desk can act as a valuable proprietary comp to inform future lending decisions. However, retrieving this data and seamlessly integrating it into the screening process can be time-consuming. Using relevant data from previously underwritten deals, your active portfolio, or market comps, Origin assists with screening new deals through its powerful deal "comparison" feature, which allows you to easily compare deals with similar features such as key tenants, location, or asset type, providing necessary insight.