1. Streamlined processes around lease agreements
Everyone within leasing knows that the most time-consuming part of handling a leasing deal is the agreement and all processes surrounding it. 50-60 percent of the total cost of managing a specific lease is directly related to the agreement – which is why every detail that can be streamlined will have a significant impact on the end process. The agreement must follow all rules and regulations regarding, e.g., handling personal information and money laundering control. Several cornerstones and key data are needed for the calculation, such as rental cost, interest rates, as well as all technical details.
When the lease agreement is up and running, there is much documentation to be handled. Although all information is managed digitally, there are a lot of time-consuming steps along the way. Administrative tasks around delivery and invoicing constitute a complex process in many organizations, resulting in a high risk of mistakes being made.
Every part of the chain requires a lot of attention and intense work – so if there’s anything a modern lease management software should have well-developed options for, it’s automation. Every minute, every hour, and every day that can be spared with the help of automated actions will save you a lot of money in the long run.
2. Transactions and surrounding payment functionality
The perhaps most fundamental functionality within a modern lease agreement software is related to payments and transactions. Most companies will have their customers connected to a country-specific payment solution. However, as new standards approach the entire Nordic market, companies will have to reconsider their traditional methods. The payment solution P27 is affecting all businesses within the financial industry, and to keep up, companies will have to partner up with suppliers to provide adapted solutions.
Applicon, for example, is building a module supporting P27 for SAP’s platform, where you can handle transactions through an interface add-on for your current system. Using this kind of solution, you won’t need to develop new features within your own leasing software but can easily utilize the added functionality without any hassle.
3. Asset management
Keeping track of your assets and all equipment related to what you’re leasing is an increasingly important part of the solution.Asset management is still something every company needs to develop on its own since there are few off-the-shelf solutions suitable for all businesses. It’s also difficult to create a comprehensive asset management solution for every industry – the overview you need to lease mobile phones cannot be applied to cars, for example. This is why asset management, even in modern leasing solutions, needs to be tailored to suit your business and let you stay in control.
If you don’t have the appropriate overview of your equipment, you are taking a considerable risk. In 2015, Volkswagen’s emission scandal resulted in a 40 percent decreased value of their cars over just one night – an extreme but tangible example of what can happen when you lack control over your assets. You need to be aware of where your things are located, who is leasing them, the status of their company, and the market itself. Another important aspect is the environmental and sustainability factor – what is your equipment really used for, and what are you indirectly supporting by leasing to the company in question?
Is your lease management software updated to meet the standards of today – as well as in five years? Talk to us at Applicon if you want to learn more about what ground pillars you need to secure in your leasing solution before taking on future challenges.