When you're in the business of auto financing you have serious competition making every second count when it comes to closing a deal. Having the right lending software at the core of operations makes all the difference. This specialized software automates many of the tasks involved in lending, including verifying customer information and calculating payments. By automating these tasks, you can reduce your processing time and make better decisions about who to lend to and how much to loan them. So how do you know if the software you're using is really the best it can be? Let's go through the features you need to have, together.
A Quality Auto Lending Platform Will Have These Five Things
As an auto financier, you should have enterprise-grade loan management software ensuring that your operations are streamlined and that you can come through for your borrowers in the most professional and modern way possible. The following are the features that make up such an extensive and powerful platform.
1. Workflows and API
Workflow automations are essential to have in an auto lending platform.. This puts technology to work for you and is an investment that keeps on giving.
Examples of Workflows You Need in Your Auto Lending Software:
- Track Repossessions, so you can keep a close eye on your inventory and make sure that you are not overexposed to risk.
- Automate processes such as insurance deficiencies, SCRA, for example
- Scripting Language, to automate tasks and give you complete flexibility in configuration.
What an Extensive API Can Do For Your Auto Lending Institution
API allows for seamless integrations with third-party programs and services, bringing all the tools and information you need into one place. A lack of communication between different areas of your business can lead to frustrated customers and difficulty collecting payments. By using integrated systems, you can improve communications and collections significantly. This allows you to provide a better customer experience while improving your bottom line.
2. Tracking and Reporting
Auto finance lenders have to juggle a lot of balls. They need to keep track of their customer's accounts, their loan terms and payments, and more. And all that data needs to be reported to the government and other institutions. A quality auto financing software has tracking and reporting functionality, making this process a lot easier. Lenders can keep track of everything related to a car loan and generate reports on all aspects of the loan for submission to regulators or investors. You want to be able to track things like late fees, NSF, DMV, doc prep, GPS, repo and legal. You also want to be able to track multiple user-defined status codes such as deferred, in collections, legal, repo, charged-off and bankruptcy. Pull, analyze and store credit reports. Report credit based on loan status to the major credit bureau agencies. If you find a platform that also offers comprehensive portfolio management, accounting, collection and collateral reports, with the ability to filter and group them into individual user needs and specifications, you have found a more than worthy auto lending software that will make sure you and your borrowers are taken care of for years upon years.
3. Borrower Portal
The customer experience is a top priority for auto finance lenders. A successful customer portal can make all the difference in providing that experience. Therefore, the best auto finance software will offer you access to a borrowers' portal. It would be a web-based interface, allowing borrowers to view and manage their account information and statements, pay online and self-service their own accounts. You also would have access to this portal on your end as the lender. It becomes the hub of communications between you and your customers. Through this portal, you should be able to do things like send off late notices and generate pay-off notices, with the ability to store everything here for easy access.
4. Easy Loan Modification
A powerful auto loan management software can automate your entire loan process, making it faster and easier for you to manage loans. You'll want the flexibility to customize and modify the software to fit your clients' specific needs. It should not be rocket science - you want it to be easy for yourself and your customers to learn and use. The ease in which a system can be changed is crucial. The easier it is the better. A system that can modify loan terms, change due dates, alter payment frequencies and defer payments - all without having to do a complete loan restructure - is one you can't afford not to go with.
5. Internal Consultant Team
A reputable and reliable auto finance company should come with an internal consulting team that can help you make the best choices for your clients' car buying experience. Having support with such a robust system is an absolute must. If possible, you want a dedicated team of managers, engineers and business analysts working with you and for you on implementation, customization and tailored integrations. You would never feel alone with an internal consulting team available to you. Even better, would be a company that creates training courses, has an online community and offers regular live webinar support calls.
Nortridge Loan Software: The secret tool to succeed in the changing world of auto financing.
If you're in the market for a new auto loan management software, be sure to keep these features in mind. In fact, look no further, as, here at Nortridge, we offer each and every one of them, and then some!
Schedule a demo today to receive a live overview of our all-inclusive loan management system with one of our software experts. They'll give you a tour of the features most important to you and answer any questions you may have. A demo is the only way to see the full functionality of Nortridge Software.