Everything You Need To Know About Equipment Financing Automation
The equipment your company makes for other enterprises is the muscle and sinew of the global economy. Though Covid has tested the capital-equipment sector’s inherent grit, the “machinery” needed to feed, clothe, house, move, comfort, connect, and entertain people remains in high demand — and seems poised for a post-vaccine boom.
“The equipment-finance industry shows resilience in the face of a worsening health pandemic and uneven economic performance in the U.S.,” Ralph Petta, CEO of the Equipment Leasing and Finance Association, said in November 2020, before realistic hope for viable vaccines against the coronavirus took hold. He goes on to list some factors underpinning this tenacity: “Corporate earnings in many sectors are strong, the equity markets continue to defy gravity, and business confidence seems to be on the rise.”
But, weighing against this hope for widespread inoculation and a tentative return to normal in 2021, the public-health crisis is worsening in the waning days of 2020. This, says the Equipment Leasing & Finance Foundation, is placing additional strain on verticals such as aircraft, office hardware, and oil and mining equipment — segments that have seen little respite since the Covid pandemic started.
End-to-end financing technology from TurnKey Lender
As a result, “the equipment leasing and financing business is forced to wage war on two fronts,” according to Elena Ionenko, co-founder and business-development chief of lending-technology maker TurnKey Lender. “On one side, some significant verticals remain stagnant, while others are subject to fierce competition among financiers in a fintech arms race to win the hearts and minds of businesses in need of capital equipment, now and for an anticipated post-Covid surge in demand.”
The solution to this conundrum lies in improving your financing infrastructure to give you a firmer handle on risk, decisioning, and front-to-back automation.
TurnKey Lender’s Equipment Financing Platform is an AI-based solution that provides full automation and instant credit decisioning to increase revenue and deepen client relationships. The technology is tailored to your precise business processes and provides fast, state-of-the-art financing. The platform can help you:
- Instantly approve credit applications for your small to midsize business customers, offer flexible lease and loan financing options directly to your customers.
- Increase average order size.
- Grow customer lifetime value by offering an easy and effortless lending experience.
- Offer an unmatched customer experience with intuitive web and mobile Interfaces.
Closer analysis shows how a cutting-edge lending-tech upgrade stands to benefit industrial- and business- equipment financiers. For example, an equipment maker using legacy technology to process financing applications, select risk-appropriate terms, make credit decisions, and collect installments may find that it’s losing ground to competitors. A solution to this problem might be found in an equipment-financing platform that does all the heavy lifting so you can concentrate your resources on big-picture issues. TurnKey Lender provides a bank-grade and wholly configurable solution that’s easy to use and covers all the bases.
Out with old analog ways, in with new digital solutions
Further problem/solution analysis bolsters the case for smarter lending tech.
- Problem: Lending to small businesses using legacy processes requires complex underwriting and paper-based documents
- Solution: TurnKey Lender provides an easy-to-use cloud-based system housing an integrated end-to-end platform with an Amazon-like digital interface and interactivity with legacy components
- Problem: Manual approvals with multiple client touchpoints and spreadsheet-based underwriting consume too much time and add an element of unnecessary risk to your overall operations
- Solution: AI-driven scoring backed by self-learning algorithms takes the guesswork out of credit decisions — even for higher-risk clients
- Problem: Sales financed by a third-party lender means you have to surrender as much as 7% of the charge, plus additional fees — and give up access to and control over client and business data.
- Solution: A platform that puts your company in control of every aspect of its in-house equipment financing operations, configured to your exact specifications, and ready for prime time right out of the box.
- Problem: Equipment financing and leases require a system that can fully accommodate a diverse array of business logics, scoring models, and loan types.
- Solution: TurnKey Lender leads the market in providing unified lending management, decision automation, and risk-assessment services. Your custom iteration of our equipment-financing solution can easily host different lending models, scoring approaches, and decision rules, accommodating a smooth and fully digital client experience.
It’s difficult to underestimate the value of equipment-financing origination that’s actually tailored to your business.
Essential features of next-gen equipment-financing technology
That’s why it’s useful to know that TurnKey Lender’s Equipment Financing Platform assures:
- Integration with your website so clients can apply for financing from anywhere at any time with any connected device
- Pre-qualification for amounts you set before they begin shopping
- Application forms that can feature descriptions and images of the equipment on offer
TurnKey Lender’s automated underwriting means you don’t have to be an experienced lender to provide financing, saving you time and money on training and recruitment. The platform also features:
- Nearly instant credit decisioning (think seconds, not days) for financing applicants
- Advanced guarantor credit scoring that applies your rules
- Automatic background and fraud checks
TurnKey Lender’s Equipment Financing Platform provides for bank-statement analysis for dynamic, permission-based credit scoring based in part on the applicant’s income and expenses. The platform’s ability to analyze these inputs on the fly means your business can:
- Gather and analyze insights from income and revenue analysis
- Conduct financial-statement analysis as required
- Stay compliant with anti-money laundering and know-your-customer criteria
TurnKey Lender’s automated booking and order completion assures fast, full-cycle functionality, including:
- Automatic loan-document generation
- Dedicated borrower portal
- Integrated e-signature services
- Funds disbursement with automatic fee calculation
TurnKey Lender provides ongoing servicing and management of individual financing arrangements that features:
- Repayment installments that can be put either on autopilot or paid from a dedicated borrower dashboard
- Monthly statements to borrowers
- Configurable due-date and past-date notifications, and modifications for special circumstances via text or email
“In our experience, the best way to win hearts and minds among equipment manufacturers is to set them at ease,” says TurnKey Lender’s Ionenko. “Our Equipment Financing Platform was built from the ground up, with extensive industry input, to do exactly that.”
Interested in seeing how the cloud-based platform incorporates the manufacturer’s order processing automation, flexible business logic, loan management, reporting, and customer portal in a single, integrated solution making the entire financing process 100% automated, quick, and easy to use? Schedule a call today.