Over the last few years, the demand for leasing and consumer credit has grown significantly, with more and more new players in the financial sector offering not only classic leasing products, but also bundled packages, where additional services – car insurance, leaseback, etc. – is offered in addition to the classic leasing.
Talking about consumer credit, one of the key success factors in this business is the ability to grant credit as quickly as possible (making a credit decision) and to offer attractive contractual conditions (competitive interest rates, early repayment, etc.).
In order to outperform their competitors and attract more customers, many companies are digitizing their processes to the maximum extent to provide fast and convenient customer service: the possibility of concluding contracts online, receiving credit in the shortest possible time. However, an attractive frontend alone is not enough to make the contracting and management process convenient and efficient. The company must have a strong back office system, which must also be in one way or another integrated with financial accounting. But how to choose such a system? Let‘s discuss the key features of a strong back office system that should be considered when choosing from the systems available on the market:
- Ability to create and configure contract views based on responsible managers, clients and contract statuses.
- Possibility to configure, draft and manage leasing contracts for private individuals and companies.
- Possibility to configure derivative financial products and additional services in addition to the core products, e.g. insurance (Casco, Third Party Liabilities, Credit Insurance).
- Fast preparation of contract documents for electronic signature or manual signature.
- Possibility to set variable and fixed interest rates, automatic recalculation of schedules after variable interest rate change.
- Automatic invoicing posting, emailing and data file preparation for e- invoice generation.
- Automatic import of customer payments from bank payment systems and linking to specific contracts.
- Automatic generation and emailing of overdue payments and reminder notes.
- Convenient management of changes to contracts by saving the original contract data.
- Management of the ends of contracts, enabling flexible ending options: early buy-out, suspension, termination or expiration.
The above features of the system are most relevant for contract managers, leasing (or credit) managers, but let‘s not forget that “leasing portfolio” does not only refer to the number of contracts entered into, but also to the balances (changes, movements) of certain Ledger accounts in the accounting. Therefore, when choosing a market-proven leasing/credit service management system, we must not only consider the above-mentioned features of the system, but also ask ourselves: what about financial accounting?
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Specialized leasing and consumer credit contract management solution.
Aušra Urbonienė
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