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Leasing Software: Price versus Value?

Guest post by: Joelle Ascher

Article Overview: When evaluating leasing software for your finance business, don't make the mistake of placing most or all of the emphasis on price alone. Although price will ultimately impact your final decision, you want to ensure that you have considered the overall benefits that a leasing software will provide for your company in the longer term. Instead, you want to focus on the bigger "picture".

Leasing Software: Price versus Value?

When evaluating and selecting a lease (or loan) software for your finance business, is price tag your top criteria and highest priority? Of course there will always be a budget limitation regardless of the size of your company and its revenues. However, placing the focus on price first instead of value can ultimately result in a costly mistake that canadversely affectyour business in the long run.

What you really should be doing is establishing a low-high price range based on currently available leasing software in the market that comes closest to fitting your exact business needs. Selecting or eliminating leasing software should not be based on what you "want" the software to cost or what you believe it "should" cost, since often these perceptions can be unrealistic.

Most importantly, your final selection should be a leasing software that will return the best return value for your business and is in a price range that is in line with your company size and revenues.

Now, let's define "best return value" and what that really means.

The first step to a successful software solution is one that has been carefully selected asbeing thebest fit for your business needs (another critical component of software success, but that's a topic for another article). A successful software implementation will allow your business to increase its efficiency and ultimately reduce costs by eliminating wasted resources and error. It will also improve customer service by answering requests with timely and accurate information. It will centralize data so that it is accessible to all levels of the organization and increaseyour overall business "intelligence". Finally, having better insight into the finance activities and performance will enable and support strategic decision making in the ongoing pursuit of continually evolving and improving the overall business based on knowledge, performance, trends and experience.

When you focus solely on the price tag, you miss this bigger picture and potentiallyharm the organization rather than improve it, especially in the long term. In some cases, you can even reverse progress, since a poorly selected and executed software based on its price tag alone can cause operational problems, erode user confidence and hurt customer relationships.

Higher efficiencies and increased data visibility can have dramatic cost savings and increased revenue producing results, which can very quickly pay for the initial cost of your software investment many times over.

Here's a real case in point of the measurable cost savings that a best fit tailored software realized for thisfinancial services company. These savings occurred progressively in the first few years once implementation was completed but were very tangible and real none the less.

√ Significantly reduced full-time collection and contract administration personnel.

√ Increased efficiency and improved data quality allowed for more focus on credit and risk management.

√ Increased late fee collections and revenue through timely invoicing.

√ Decreased delinquencies through future payment invoicing and proactive contract management.

√ Reduced office size and related expenses due to decrease in personnel.

√ Reduced accounting month end reporting to hours versus days.

Are you seeing the bigger picture now...?

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Article Tags: lease software, leasing software, loan software



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