eChattel Users in Equipment Leasing Gain Competitive Advantage for 2018

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Equipment Leasing Companies Get the Heads Up from Experts: eChattel a Key Differentiator in 2018

Yesterday, the Equipment Leasing and Finance Association (ELFA) revealed its Top 10 Equipment Acquisition Trends for 2018. In the report, ELFA forecasts that capital spending will have its strongest performance in six years. This is exciting news when compared to the 2017 report that detailed a period of slow growth for the year, creating sluggish equipment leasing activity across the globe. We are encouraged by this positive forecast and believe, that as a result, 2018 will also see an uptake in stakeholders investing in eChattel capabilities and digital transaction management.

With the advent of electronic document transactions and eChattel, lessors are proving that investment in these capabilities creates real competitive advantage. Perhaps based on educational programs from ELFA and others, perhaps because expectations for digital enablement are higher across the board, 2018 is predicted to be a banner year for equipment leasing companies that differentiate themselves with eChattel capabilities.

Respected industry leaders at Alta Group concur that explosive growth is upon us. Witness Alta Managing Director Valerie L. Girard’s assertion earlier this year (January 17, 2018) on LinkedIn: “Equipment-based securitization issuance should be in the $30-35 billion range, consistent with its strong 2017 showing of roughly $32 billion in issuance across a variety of asset classes.”

eChattel Benefits

Growth among equipment leasing companies likely will attract even more investors and investor confidence will rise as the percentage of those who use eChattel capabilities skyrockets. Reduced transaction costs, decreased cost of origination and streamlined processes for managing asset lifecycles all point to one conclusion: eChattel adopters will be the winners among those competing for business. Here’s’ why:

  1. Customer Experience: eChattel paper, which means using digital documents during lending and post-signature management of electronic leases and contracts, enhances the customer experience. Customer experience is widely acknowledged as the “secret sauce” for all types of industries in gaining value and protecting revenue.
  2. Legal Protection: Even though other industries have been using eChattel paper for years, equipment leasing has lagged in uptake of electronic documentation. However, it is so much easier to prove “control” of eChattel paper if you possess indemnity within the software itself. Instead of disparate, human-error-laced processes during origination and throughout the life of your eChattel, you have airtight legal enforceability.
  3. Compliance and Security: Modern eChattel software has built-in safeguards that assure compliance in the face of any audit you might have to handle in 2018. If you take a bit of time to watch our Guide to eChattel and Digital Technology webinar produced with ELFA, you will be able to check off all of the security and compliance boxes you will face—in 2018 and beyond.

Technology remains the great differentiator in our space: Its ability to retain and gain customers; its ability to protect against legal challenges; its cost controls that also safeguard compliance and regulatory needs—all will point to greater eChattel adoption among our peers in the months to come. Alta’s Girard concurs: “With all the hype around digitalization, disruptive technologies and fintech, 2018 will continue to see the asset finance industry evolve and embrace the available technologies…with so much technological opportunity, 2018 is likely to see the more agile and innovative players distancing themselves from their competition.”

Join the Digital Revolution in Equipment Lease and Finance

If you are ready to reap the benefits of eChattel and a digital transition, please take a moment to review our recently released eLeasing Digital Playbook. It will walk you through the steps to start digital and stay digital as you transition your organization away from paper. Download

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