It takes both time and energy to manage the entire leasing process smoothly, because of the amount of technical, routine tasks. Creating quotes, doing instalment calculation, creating applications, preparing instalment schedule, keeping track of contract balances, terminating and closing the contract… It is just a small part of tasks particular employee is responsible of.
Lease administration software becomes your greatest assistant when routine tasks start taking too much time. It is a system, that provides a centralized database where important information could be stored, and enables you to manage lease payments, prepare abstracts and stacking plans, and analyze lease-level financial information. All in a one place.
Lease management process is completely automated
Application administration process includes managing various stages of application lifecycle: origination, maintenance, termination, etc. Now your employees are probably doing all this stuff manually and the whole process is taking ages to be completed. With lease administration software, lease management process could become faster, easier and even give financial benefits to your company.
Software increases efficiency of the job in a few different ways. Firstly, it provides automated tools for originating leases such as:
- Disbursement schedule – payment instructions to all suppliers, insurers and originator involved in the application);
- Vetting Check – tool for verification of applicant references, like employment and credit references;
- Special approval conditions – for conditional approval of an application;
- Source of access – to keep track of how new customer approached the lessor (e.g. ad, web search, dealer recommendation, etc).
Secondly, lease administration software lets to manage applicants effectively. It allows collecting many different applicant attributes, like industry sector, legal form (for businesses), occupation, marital status, residential status. Also, you can have multiple applicants or parties involved in single application (e.g. co-applicants, guarantors, directors, partners, next of kin, etc.).
Thirdly, lease management process gets easier with originator management module, which allows master records of equipment dealers, finance brokers, i.e. parties who introduce new lease applications. Multi-branding, grouping of dealers, dealer authorization and several other related functionalities are possible with the system too.
Administrative software increases productivity
Employees’ productivity is the core element of perfectly functioning company. With lease administration software, you can increase efficiency of serving your customers more than three times. All because of the automated tools, this system brings to your daily work routine. Administrative software helps you all the way through managing the entire leasing process — from the lease quote through the entire contract to reporting. It helps to handle customer inquiries faster and gives you an advantage against competitors. With Soft4Leasing lease origination software, your front office will be able to provide quick quotations for a customer using pre-set conditions in the system and the user-friendly self-explanatory system interface.
In addition, administrative software automates credit-decisioning process. When new application submitted, system runs Decision Tree logic, which gives one of three results: auto-approved, auto-declined, and referred to credit officer. The decision Tree is set of highly configurable business rules, based on any information available (attributes of applicant/asset/application/originator).
Furthermore, integrated automated credit scoring system module aims to ease lending decisions to lenders. Using credit-scoring system you can automate customer credit score, calculate and set credit rating. Keep in mind that using effective credit rating and credit decision workflow you will improve your business “Time-to-Decision” KPI too.
Accounting for leasing tools helps to save money
Accounting for leasing is tricky, so it is better when you keep everything from the payments’ data to information about balances in one particular place. With lease administration software, you can manage leases of any type within a specialized subledger, which is integrated with general ledger. This feature has a leasing posting setup, i.e. mapping lease process to G/L accounts, and multiple functions for G/L posting automation: on contract activation, on instalment due, on contract termination.
In addition, accounting for leasing tools enables you to calculate actual daily interest with two components: financing interest, based on outstanding receivable, and penalty interest, based on overdue amount. This feature allows for configurable methods of 360/30, 365/Actual, Actual/ Actual day conventions. You can see the interest calculation log with each component involved in the calculation – number of days, interest base, interest rate, tolerance applied.