Small and medium enterprises often depend on equipment and vehicle lessors to get hold of necessary equipment with limited upfront cost and flexible payment plans. This helps them in conserving working capital and avoiding cash-devouring down payments while gaining access to the latest equipment. According to the Equipment Leasing and Finance Foundation, seven out of ten businesses use at least one form of financing to acquire equipment. Despite this, the industry is vastly manual using traditional, on-premise legacy systems. They lack automated underwriting, billing and payments; access to real time information, advanced analytics and customer-focused strategies to improve productivity and drive revenue growth.
Cloud technology can bring much needed change to the leasing industry by automating processes, streamlining operations and bringing transparency. Small sized firms that were unable to compete with big tech giants due to constrained budgets can now leverage cloud technology to level the playing field, if not tip the scales in their favor.
We recently discussed this in the World Leasing Yearbook 2016, how cloud technology can drive growth in the leasing industry. We explored the challenges facing the lessors and how cloud-based solutions can help them achieve a competitive advantage.
Irrespective of the asset class, all lessors face similar problems, the most important being the lack of systematic information, lack of visibility and an inability to catch the rhythm of the market in time. Disparate systems lead to duplication of efforts and compromise operational visibility. Besides, lessors find it hard to introduce new product innovations in the small window of opportunity that occasionally presents itself.
Forward looking lessors are looking at cloud-based solutions to lower costs, minimize asset risk and give them the flexibility in operations that manual processes and old technology so desperately lack. Besides flexibility, cloud-based leasing solutions provide automation and a single system of record that gives lessors a 360 degree view of all applications, dues and contracts.
To learn more on how leasing firms can leverage cloud-based solutions to achieve a competitive advantage, read our article here. You can also download our ebook to learn the 3 ways cloud-based leasing solutions can grow revenue for equipment lessors and outmaneuver the competition.