Written By Andrew MacDowell, Director, DecisivEdge™
Tech-savvy borrowers have clear expectations when it comes to engaging a lending company to help them finance their new or expanding business. Lenders who don’t meet some or all of their basic expectations may risk losing the deal to a competitor.
Our team often works with lenders that know their lending platform is either out of date or nearing end-of-life. They engage us to work through their lending and leasing software options and determine if our solution is the best fit for their requirements. When evaluating their options, many lenders look at the following checklist of features to meet the demands of the next generation. Specifically, they want a platform that lets their potential borrower:
- Conduct business with your company through a single access point
- Use mobile devices to transact business
- Sign documents electronically
- Utilize mobile-friendly communication: automated reminder notifications, text messages, and alerts to keep them informed throughout the process
- Feel secure using automated verifications such as job employment, assets, income, ability to pay, and credit scores
- A fast loan decision and easy to use automatic payment option
How should equipment lenders choose the right tech partner?
Getting a new, state-of-the-art equipment lending solution is not the only decision equipment financing companies need to make. Choosing the right technology partner responsible for implementing and customizing the platform is the second major decision in this process. A good tech partner helps you refine your “secret sauce.”
- The right tech partner should be innovative: Our industry is changing rapidly, so it is important to work with someone who likes to ponder “what is next” and “what if.” A good tech partner should be ready to test new things and frequently ask itself, “What kind of updates am I going to implement?”
- The right tech partner should be accessible: Transparency is important in our industry. A good tech partner should offer its customers all the details of its products, such as product history, product categories, and the regions it serves. It must be able to address its advantages over its competitors. For example, does it have any specialty products? What is its business value? What is its technical architecture? What are the technical components?
- The right tech partner should be supportive: An equipment lender should be able to turn to its tech partners whenever there are technical difficulties. A good tech partner must also allow flexible setup, marketing promotions, and pricing for its customers.
If you want to take a deeper dive into “how to select the right technology partner,” my colleague Sukumar Narayanan wrote a great piece on this a few months ago. Click here to read the article.
The next generation of borrowers and other tech-savvy business owners are very entrepreneurial and have greater desire to start small businesses than previous generations. Acquiring equipment is necessary for many businesses just starting up, moving into newer bigger offices, or expanding. Finding the right lending partner that gives them competitive rates, a digital experience, and quick access to funds are required to meet their demands.
About the Author:
Andrew MacDowell has over two decades of senior management experience in the credit card industry with Fortune 500 financial institutions such as MBNA Corporation and Bank of America.
Andrew has specific expertise in areas such as Business Development, Loyalty Marketing, Corporate Project Management, Bank Operations, Payments, and Fraud. Most notably, Andrew was a key founding stakeholder of MBNA Canada during its peak growth phase in the Canadian marketplace, which ultimately led to it becoming the largest MasterCard issuing bank in Canada.
Andrew is a graduate of Georgian College where he holds a diploma in Business Administration and majored in Marketing Management.