How to Choose the Best Finance Software for Your Business
Finance is an integral part of the automobile business. You may need to advance loans to automobile buyers or process lease requests from them. A finance software may be quite a helpful tool in this respect.
Leasing, loaning, fleet financing etc. are some of the common jargons used in the automobile financial sector. You need to advance loans to customers buying vehicles. You may need to handover vehicles on lease. You may also need to finance a fleet of cars. All these calls for innovative financial solutions. Once a financing solution is selected for a particular transaction, you need to process the finance, carry out correspondence, calculate EMIs, remind and account for renewals, and get involved in a host of other activities. This goes on through the entire cycle of the financial scheme. However, with the help of a finance software, you can automate the entire gamut of operations involved in financing automobiles.
The flow of work through a finance software
There is a defined flow of work involved in settling a loan, lease, or a financing scheme.
Application of customer
The customer fills out a form on your website and submits it. This can also be in the form of XML feed. This is picked up by your finance software system for analysis. It analyses the details and sends the form for approval to the appropriate authorities.
Once the approval is given by the competent authority in your organization, you need to communicate it to the customer. You also need to communicate with the customer about further requirements of documents. This can be done entirely by the finance software through the web.
Submission of documents
Now it is the turn of the customer to provide all the necessary documents to satisfy the requirements. You can even issue legal instructions regarding the funding. The documents can be saved in a proper format with the help of a finance software.
At this stage, the finance software generates a cheque for the eligible finance amount in favor of the customer. You need to make appropriate entries in the software for accounting and administrative purposes.
Benefits of a finance software
Smooth flow of work
By using a good finance software, you can get a smooth flow of work, right from an expression of interest for finance to the generation of a cheque.
Credit bureau query
You have the option of performing a credit bureau query to ascertain the credit score of the customer. This can be done at any stage while processing the request for approval. The software is enabled to use different credit bureau interfaces. You can even create your own credit scoring system in the financing software. Some software has internal calculators to calculate debt services.
Customization of security
By using a good financing software, you can customize security for individuals or groups of employees in your organization, in terms of access to different operations and database. You can choose the level of restriction for each individual employee or groups of employees.
Manage different types of loans
You may decide on subsidized loans for your employees, special interest rates for special groups etc. The software can manage all the different types of loans from a single platform.
Divide your loans into different portfolios
You can also divide loans into different portfolios. They can be designed in the form of special groups of customers with different variables. This will help you to filter the entire gamut of loans in different tools and reports. This is helpful in sending different notifications to different groups. You can also create separate forms for each of these groups.
Automate your day-to-day processes related to financing
Different situations may arise in different loans for different customers. There is a lot of day-to-day work involved in servicing individual customers or portfolios. You may need to make correspondences with customers regarding EMIs or servicing of loans. This is a continuous process throughout the lifecycle of a loan. With the help of a finance software, you can automate such day-to-day processes.