The goal of every business is to grow. One way to grow is to embrace change and look for new ways to differentiate your businesses. With change being a constant in the world of business, embracing new technology is one way to open the door to new opportunities.
In the equipment finance market, growth happens by expanding the portfolio size of your existing customers or finding net new business. As you build your base, expansion is a byproduct of having good relationships with your current customers. Regardless of where your growth is coming from, finding net new customers can be achieved by arming your sales team with the right technology to help deliver a unique, differentiated experience when engaging with new prospects.
As you research options to help drive growth, it is important to think about how you can use technology to:
- Deliver Powerful Pricing…Fast
- Simplify the Origination Process
- Embrace the flexibility of the Cloud
In this three-part series, we’ll take a look at how asset finance technology can help you address these key points and help you gain a competitive edge. As you can see from the graphic below, there are many aspects of managing Origination to Portfolio Management to End of Term. In this first post, we’ll cover the first step in effectively and efficiently managing the life cycle.
STEP #1 – Delivering Powerful Pricing
The first step in securing new business is being able to generate a pricing quote – fast. Especially for small and medium ticket items, the ability to provide a timely quote is key to winning new business ideally at point of sale. While the ability to go fast is critical, it is equally important to hold to the pricing principles that ensure your target yields or APRs can be accomplished by employing a pricing tool. The value of a pricing tool or pricing engine is the ability to standardize the process by constructing a framework aligned with your business goals.
In selecting a pricing tool, you should look for the ability to create templates to streamline data entry with default data, only requiring the entry of the details specific to the deal. The tool should be flexible enough to provide pricing for all lease or loan types and be able to solve for rental amounts, residual values, asset costs, number of payments, etc. Having a flexible system that offers templates not only saves time but ensures accuracy of the pricing process. Once entered into the system a pricing quote can be calculated and documents created in one simple process. If you need to modify the quote, the technology should be able to support modification of details including deal structure generating a new quote.
We’ll expand on this topic in our second post when we cover how asset finance technology can help to simplify the origination process. Interested in learning more? Check out our Q&A videos to learn more about how IDScloud can help your achieve your growth goals.
Continue Reading: The Cloud Effect blog, part 2 in the 3-part series
Ray Wizbowski, Vice President of Marketing