* Is High or Low Best: Lower is Better
Commercial Loan Application Processing Cycle Time is the measure of the number of calendar days needed in order to process a commercial loan application, from the time the initial application is received from the customer to when the application is sent to underwriting for review. This is an important metric in understanding the efficiency of administrative functions and the effect on application review cycle times and customer satisfaction. Extended cycle times for this metric may be due to poor employee performance, sub-par training, a lack of job aid or process checklist use, incomplete or inaccurate applications that require additional follow-up with applicant, poor quality of processing which requires additional work to fix errors, or redundant, low-value application processing work steps.
The number of calendar days required to process commercial loan applications, measured from the time the initial application is received from the potential borrower until when the application is submitted to the underwriting, or risk management, function.
Two numbers are used to calculate this KPI: (1) the number of calendar days required to process a commercial loan application (measured from the time the initial application is received from the potential borrower until when the application is submitted to the underwriting or risk management function), and (2) the total number of commercial loan applications received. Include business days as well as weekends in the numerator. The date at which the application is received is the date from which the customer submits the application to the financial institution, regardless of area.
(Sum of Calendar Days Required to Process Commercial Loan Applications) / Total Number of Commercial Loan Applications Received
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