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Flexible Financing Fuels Critical Competitive Advantage for Asset-Based Manufacturers

Paul Mattiacci
Sales Consulting Manager, Oracle Financial Services

Flexible financing moves more products, increases transaction size, and creates new revenue streams to keep your business growing even if your markets aren’t. These programs are among the most effective competitive weapons available to manufacturers today, whether you build cars or computers, appliances or ATVs, mobile homes or motorboats, trucks, or tractors.

My experience is that the most successful manufacturers with finance divisions have committed to investing in technology to fuel their competitive advantage. However, not all technologies yield the same results, especially when it comes to one-off point solutions that can create unnecessary complexity and drive up costs. Instead, lenders should focus on a comprehensive lending system that automates all aspects of financing, including loans, leases, and lines of credit, and supports new technologies like Internet of Things (IoT) integrations and chatbots powerful force multipliers. Manufacturers can offer more flexible and differentiated financing options to move more products, create new revenue streams, increase profits, and deliver better customer service.

For example, a leading captive equipment finance company has experienced superior capability, reliability, and functionality from Oracle Financial Services Lending and Leasing, which has positioned them to drive more product sales by offering flexible financing programs to their dealers. The availability of IoT capabilities will allow them to provide new financing options, such as subscription, rental and usage-based offerings, to all of their strategic dealers while enhancing portfolio services, communication, management, and analytics targeted for their end customers.

Move more products

Modern lending and leasing solutions are designed to maximize product and inventory turn by offering dynamic finance programs, including subsidies and promotions, so manufacturers and their dealers can move specific products in specific timeframes. Other point applications available can do some of these things, but only an end-to-end solution will deliver one seamless system tailored to the needs of manufacturers.

Leverage modern, cloud-based technology

Today, there’s no reason to be handcuffed by rigid legacy mainframe systems or proprietary technology. That’s why Oracle offers cloud-based deployment options. You’re assured of a secure, proven lending platform that’s scalable, robust, and compatible with today’s evolving technology standards. Utilizing modern technology, the lending and leasing solution is vastly less expensive than maintaining mainframe systems and easy to support internally, offering you a lower total cost of ownership.

New technology, such as (IoT) and Digital Assistant capabilities, provides the manufacturer's ability to support flexible finance options, including subscription services and rental programs, plus improve customer service. Lenders that offer customer self-service or customer self-help capabilities empower customers to manage their accounts on their time without any involvement of the lender’s operational staff, improving the customer experience while saving manual steps and related costs. Also, captive lenders, such as vehicle and equipment finance companies, can leverage IoT technology to provide valuable information on usage amounts, maintenance levels, and, if required, the ability to locate the collateral. The bottom line, these technologies provide substantial benefits to the lender, the dealer, and the end customer.

Increase dealer and customer satisfaction

In a saturated market, lenders compete on rates and their dealer and customer service value proposition. Increasingly, the market expects a growing list of value-add capabilities, such as instant loan approval, total financing flexibility, floor planning programs, real-time payment processing, title tracking, insurance processing, self-service account access, and more. Those that deliver will help dealers close sales faster than ever, and repeat business will soar. And, with all lending data in one place, you’re never more than a click away from responding to customer questions.

Minimize risk and losses

A comprehensive default management solution minimizes the risks of loan losses and charge offs. It also reduces the risk of ineffective collections processes, and non-compliant lending practices with features such as behavioral scoring (which allows more accurate risk assessment), as well as bankruptcy, repossession, recovery, and integrated collections features, built-in federal and state compliance tables, and more.

Get started today

Are you ready to take financing to the next step? Then visit www.oracle.com/OFSLL for more information on how Oracle can turn financing into a competitive tool that moves more of your products, creates new revenue stream, and improves profit margins.

To learn more, feel free to message me to explore more, or have a conversation.

For more information, please visit:
Oracle Financial Services Lending and Leasing: www.oracle.com/OFSLL
Oracle Financial Services: oracle.com/financial-services

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