In the second post in our 3-part series, we’ll continue to expand on how asset finance technology can help you grow your business. Today, our focus will be on how asset finance technology can help you simplify the Origination Process.
STEP #2 – Simplifying Origination
Once you have generated a quote and your prospect is interested in pursuing funding, the next step is to complete the application process. One of the challenges faced by lessors is being able to efficiently work through the application process leading to a financing decision. Any delay in the process can open the door for the prospect to shop around for other options. While potential customers will almost always look for comparison between financing options and pricing quotes, the firm that provides a quick and simple application process will likely have a better chance of winning the business.
Technology can provide an advantage if all elements are integrated into the application workflow. In the image below, you can see how Cloud enables the ability to connect all aspects of the asset finance life cycle.
Example: When completing credit underwriting, performing a credit check is the first step in making a funding decision. Regardless of your risk threshold for new customers, funding decisions require the financing firm to understand credit worthiness. In the past, this step was not part of a technology platform workflow, but rather a secondary step performed though direct interaction with the credit service bureau. Now, origination platforms are building this into the workflow with integrations into leading credit reporting companies. This integration allows all of the information gathered during the application process to be passed to the credit service bureau enabling a near real-time return of a credit score which will simplify and accelerate the decisioning process.
Technology Integration. Other technologies that can be integrated in the origination workflow are functions like tax and e-signature. You may be providing a pre-tax calculation during the pricing phase, but as the application moves closer to funding, the ability to pull real-time tax information within the process workflow provides the ability to move fast without sacrificing accuracy. It is important that this integration is web services-based which allows for real-time tax calculations to be applied to the contract pulling in all relevant variables (i.e., location, asset type, etc.).
Digital signature or e-signature is another technology integration that can speed up contract funding during the origination workflow process. The applicant simply has to use their finger to sign and agree to the terms instead of obtaining a paper signature, scanning the form and submitting it. With e-signature, all of the necessary legally binding signatures can be obtained through a click through contract or with a touch screen signature on a tablet.
In our final Q&A post, we’ll we discuss the benefits of transitioning to the cloud. Learn more about IDScloud.
Continue Reading: The Cloud Effect blog, part 3 in the 3-part series
Ray Wizbowski, Vice President of Marketing