You’re knee-deep in a complex syndication deal, juggling multiple spreadsheets, emails, and phone calls. Everything seems under control—until one small error in a spreadsheet derails the entire process. Sound familiar? If you’re still relying on manual processes for syndication, you’re not just slowing yourself down, you’re missing out on critical opportunities and creating risks for your business.
The state of syndication
The global syndicated loan market is valued at over $5 trillion annually, with equipment finance playing a significant role in this growth (PYMNTS). Syndication allows lenders to spread risk, increase lending capacity, and manage their balance sheets more effectively. However, many lenders are still stuck in the past when it comes to managing these processes. According to an Equipment Leasing & Finance Foundation (ELFF) study, almost 60% of lenders use Excel spreadsheets and other personal productivity tools to manage syndication, while only 25% use web-based tools.
Manual processes, like spreadsheets, not only create inefficiencies but also limit your ability to price deals effectively based on syndication partners. Additionally, they prevent you from automating key decisions, such as whether to keep a deal on your own balance sheet or syndicate it. This lack of automation is costly in an industry where quick, data-driven decisions are crucial for maintaining a competitive edge.
The hidden costs of relying on spreadsheets
What if you could eliminate the headaches caused by manual processes? Here’s what you’re up against with spreadsheets…
- Lost Deals – Delays in decision-making or failure to provide acceptable pricing and structuring based on syndication partners can lead to missed opportunities. If you can’t move quickly and align pricing with what syndication partners expect, competitors will step in and take those deals.
- Time Drain – Office workers spend more than 50% of their time manually hunting for files (Workato). Imagine what you could do with that time back.
- Error Prone – Manual data entry can lead to costly mistakes. Automation has been shown to reduce errors in financial processes by up to 75%. (Gartner).
- Inefficiency – Task switching costs 40% of productivity (Workato). With spreadsheets, you’re constantly jumping between tasks, eating into your efficiency.
- Limited Visibility –When data is scattered across different files and versions, keeping everyone on the same page becomes a challenge. In many equipment finance companies, syndication knowledge becomes siloed within a single individual or a small team. This person becomes the go-to syndication guru, holding critical information in their head or in their own personal files. What happens when they’re on vacation or leave the company? You could be left scrambling to piece together vital syndication processes and partner relationships. Additionally, limited visibility extends to your sales teams. When salespeople lack real-time insights into where a deal should land within your syndication strategy, they can’t properly price or structure deals to align with the expectations of syndication partners. This creates inefficiencies in deal-making and could hurt your bottom line.
This lack of visibility doesn’t just slow you down—it can lead to missed opportunities and increased risk. Without a clear, unified view of your syndication activities, you might overlook potential deals, misunderstand your exposure, or fail to spot emerging trends in the market.
The case for automation and augmentation
You might be thinking, “Sure, spreadsheets aren’t perfect, but they get the job done.” But what if there was a better way? Automation and augmentation aren’t just about efficiency—they’re about accuracy, smarter decision-making, and staying competitive while leveraging human expertise where it counts.
- Faster Decisions – Automatically determine whether to keep a deal on your balance sheet or syndicate it to other funding partners. This decision-making process is streamlined, freeing up your time for higher-value tasks, while still giving your team the final say on key syndication decisions.
- Pricing Optimization – AI-driven tools can increase the accuracy of partner matching by 30-40%, ensuring that you’re making the most strategic syndication choices (ELFF). Instantly price a deal based on each syndication partner’s profile, ensuring that you’re not only making the best financial decisions but also empowering your team to build and maintain strong partnerships.
- Industry Concentration Accuracy – Automation can also help monitor and prevent overexposure to high-risk industries. For example, many lenders faced significant losses by having too much concentration in transportation—a sector that’s seen volatility recently. Using automated tools, you can quickly assess whether a deal will create an overconcentration in a specific industry, helping protect your portfolio from market shifts.
- Streamlined Workflows – McKinsey estimates that 60% of employees could save 30% of their time with workflow automation. In syndication, this means quicker turnaround times for deals and more efficient resource allocation.
- Improved Accuracy –Automation has been shown to reduce manual errors in financial processes by up to 75%. In syndication, where accuracy is critical, this reduction can prevent costly mistakes and improve partner relationships.
- Secure Data Transfer – API frameworks automate the secure transfer of data and documents between you and your syndication partners. This not only protects sensitive information but also speeds up the entire syndication process.
- Cost Savings –According to experts, financial automation can save up to 90% of operational costs (Paystand).
Making the switch
You might be wondering, “Is it really worth the effort to change our processes?” Consider this: 75% of companies report that using workflow automation gives them a strong competitive advantage (GitNux, 2023). In the equipment finance industry, where margins can be tight and competition fierce, can you afford not to have that advantage?
Moving away from spreadsheets isn’t just about avoiding errors or saving time—it’s about positioning your business for growth. By automating syndication, you’ll have more time to focus on strategic decisions, build stronger relationships with partners, and respond more quickly to market opportunities.
Aurôra Syndicate
Aurora Syndicate is northteq’s innovative platform, designed to address all the challenges we’ve discussed, helping you automate, optimize, and streamline your syndication process while still leveraging human expertise where it matters most.
- Automated Syndication Decisions – Decisions on whether to keep deals on your balance sheet or syndicate them to other partners are automated, ensuring you’re making the best use of your capital with minimal manual intervention.
- Pricing Optimization – Aurora Syndicate allows you to price your deals based on syndication partners, taking the guesswork out of the equation. Sales teams are provided with all the critical information they need upfront to price and structure deals for success. This enables them to confidently present competitive, tailored offers that align with your partner’s expectations, improving overall deal outcomes and reducing lost opportunities.
- Automated Syndication via API – With its API framework, Aurora Syndicate automates the secure transfer of data and documents between you and your syndication partners, speeding up deal flow and reducing manual effort.
- Streamline Communication – All your syndication communications are centralized in one secure platform. You’ll build stronger relationships with partners through clear, timely, and organized interactions. No more lost emails or missed opportunities—just smooth, efficient deal flow that keeps everyone in the loop.
- Strengthen Your Partnerships – Aurora Syndicate’s Lender Portal transforms how you connect with your syndication partners. You can share deals with a few clicks, track responses in real-time, and nurture your network all in one place.
- Data-Driven Lender Selection – Aurora Syndicate recommends the best lender for every deal, considering factors like past performance, current capacity, industry concentration, and deal specifics. This helps maximize the value of each syndication opportunity while protecting your portfolio.
Time to upgrade your syndication process
You’ve seen the numbers. You know the challenges. Isn’t it time you left those spreadsheets behind and stepped into a more efficient, accurate, and profitable way of managing syndication?
Take the first step towards syndication success.
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Your spreadsheets won’t miss you, but your bottom line will thank you.
