Commercial and member business lending is one of the fastest growing loan segments for credit unions of all sizes. Direct originations combined with frequent loan participations as buyers and sellers for managing various lending and concentration limits, drives a need for better and more sophisticated software solutions than the traditional consumer focused cores and spreadsheets alone. LoanStreet gives your member business and commercial team a modern servicing platform alongside your core, so every business and commercial loan (and participation) is tracked once and automatically available to the right team members, participants and even relevant third parties like auditors, attorneys or appraisers.
Business members call or email for new draws and send financial statements and other supporting documentation over email as attachments or “secured portals” unconnected to your servicing platform. Your team re-keys every request and chases every document.
Most legacy systems are designed to be used by a small cohort of users (or worse, charge by seat), making it difficult for information to be seamlessly shared within an institution and among participants. Ultimately, colleagues covering everything from credit review, loan ops or administration, finance, ALM management are stuck relying on spreadsheets prepared by others instead of having permissioned access to relevant information. These information divisions and silos make taking timely and informed actions difficult.
The core handles auto loans and mortgages well, but commercial terms, covenants, and participation splits get tracked on the side in Excel, shared drives, and inboxes, then reconciled by hand. Teams send reminders for covenant documents to borrowers (and guarantors) and, in some cases, even invoices, manually, let alone the information that participants require to manage their position in the loan.
Construction draws, delayed draw term loans, interest-only periods, and floating rate CRE loans don’t fit consumer-oriented systems, so the most complex member business loans live outside the system of record. Additionally, many credit unions are starting to offer even more complex products to win business accounts including unitranche and payment in kind (PIK) loans that are almost entirely handled manually outside of the core.
Portfolio management does not stop mattering simply because the loan is a participation. Managing the entirety of the portfolio necessitates a servicing core that can track all of your loans whether direct, purchased or if a portion has been sold. Traditional tools lack the ability to line up the full portfolio, including covenant information, regardless of servicer. On the other side, the manual efforts involved in informing participants of loan actions from payments, and delinquency information to draws and covenant compliance is almost an entirely manual process.
Payments, draws, and remittances move from request to settlement without re-keying. LoanStreet generates NACHA files for ACH and messaging for wires, SWIFT, and EFT, delivered to every party’s bank. Co-lenders and borrowers submit their own banking instructions on-platform.
See Commercial and MBL along with participation exposure across the whole book, filterable to the position level. Covenant information, certificates and financial statements are captured against each loan with customized schedules:
Deal setup, lender registers, amendments, impairment workflows, and distributions run from one place, with AI boarding from credit agreements. Take on more members and deals without a matching rise in headcount.
Whether you sell a participation or buy one, every credit union in the deal works from the same permissioned, source of truth (or loan record). Data flows back to your core through APIs, SFTP or through SSO and to the broader team including accounting and finance:
LoanStreet’s MCP server lets your team query deals, positions, payments, and covenants from Claude or the AI agent of your choice, with the same permissions as the platform.
No. LoanStreet sits alongside your core and handles commercial and member business loans and participations. APIs push and pull any data point, single sign-on is available for “home banking” integration, and accounting integration uses your institution-specific chart of accounts for general ledger entries.
Yes. Lead and participant credit unions work from the same loan record. Participants get permissioned access to their positions, lender notices, and portfolio dashboards, and payments are distributed automatically.
Every payment, request, document upload, and election is logged to an auditable event trail, and covenant documents are retained against each loan. Auditors and examiners can be given permissioned access.
LoanStreet runs implementation in phases: discovery, iterative data loads and validation in a test environment, integration build, training, and a parallel run before go-live. With our new AI-powered implementation tools, work and validations that used to take months, now only take hours.
See the full LoanStreet commercial and corporate loan servicing platform: AI loan boarding, straight-through payments, covenant tracking, and portfolio analytics.