A Joint Solution by eOriginal and LeaseTeam Results in $12 Million More in Business Annually and 10% Increase in Repeat Business for OnePlace Capital
OnePlace Capital, a division of Bank Midwest serving the healthcare industry, has a financing model based on the idea that every loan is designed to fit the unique needs of the requesting healthcare practice. This presents the need for a delicate balance of not only satisfying their customer, but also their vendors.
By providing personalized and flexible service, OnePlace Capital has a competitive advantage. However, that individual approach to each transaction presents a significant challenge to operations. The company spends more man hours on document management than any other aspect of its business, including creating and sending out the documents, tracking the customers down to sign the documents, and then tracking and archiving exercised originals. This also creates an additional problem because every loan processed costs the company the exact same amount of time and money to originate, regardless of its size.
It became apparent that, if OnePlace Capital wanted to keep offering a top-notch customer experience, it needed to adopt a better process for obtaining original contracts, simplifying the loan origination process and reducing the sales cycle, all while still providing a customizable level of customer support and financing.
The company concluded that the optimal approach was to automate its document-based transactions—coupled with intuitive workflows—and implement an electronic signature and vaulting process.
The company engaged LeaseTeam and worked with its Business Analysts for approximately 40 man hours, examining and documenting the existing document management processes. Once the team had all facets of the process documented into flowcharts, they began to define and build out rules-based workflows, which was the biggest part of the project.
Once OnePlace Capital was satisfied with the workflow capabilities of ASPIRE™, LeaseTeam’s lease and loan management solution, it began looking into the electronic signature aspect of the process. ASPIRE offers a seamless integration with eOriginal, extending post-signature digital transaction functionality with their eAsset® Management Platform.
OnePlace and eOriginal’s legal counsel spent a significant amount of time educating Bank Midwest’s legal team to ensure they were comfortable with the enforceability of the eSignature process and the compliance to UCC Article 9 – 105, which clarifies the rules pertaining to the control of electronic chattel paper. Once Bank Midwest’s legal team signed off on the process, it was time to implement our solution.
As a result of implementing the Digital Transaction Management joint solution from eOriginal and LeaseTeam:
- The average turnaround time for the company’s electronic document process, verses its previous wet signature paper documents process, has been improved by over 50%.
The company reduced the cycle time from an average of three days to receiving them back the same day, and in many cases, in a matter of hours.
- The need to chase missing data is eliminated, improving efficiency.
The information that is now required (such as driver’s license data, insurance information, bank account information, etc.) has to be inputted before the workflow will allow them to move forward to the signing. As a result, the company is receiving the required information on every transaction the first time, and eliminating wasteful follow up.
- Receiving documents electronically has eliminated the quality of data issues.
Now, 100% of the time, the documents are complete and in perfect condition—no more poor quality faxes!
- The painstaking process of following up on original contracts is eliminated.
As part of its formal business policy, the company has to receive the original, executed contract. Previously, fulfilling that requirement meant a significant amount of man hours were spent on follow-up phone calls, emails, messages, etc. By implementing the new technologies and resulting processes, the company has completely eliminated the need to track down original documents. The technology now provides the original document once the Borrower clicks the final button in the signing process.
- Their conversion rate has increased by 5% (ratio of documents sent to documents received back).
The ease of execution leads to receiving more contracts back. Typically, these deals are lost, either because they don’t end up buying or they find other financing.
- Customer relationships have improved due to ease of use.
The company’s customers are excited about the eSignature process and respond faster because they are interested in how it works. They love the simplicity and the ease of the process, and over 25% of them have taken the time to contact the business in support of the new process.
- Vendor relationships have enhanced, resulting in $12 million more business annually.
In the company’s first use case, it slowly introduced the technology to the vendor over seven months. Following the implementation, OnePlace Capital experienced a 40% increase in volume from that vendor.According to the vendor, the increase in volume was a result of their reps and their finance department vocalizing how much easier it was to do business. Prior to adding the new technology, their vendor was splitting their transactions between OnePlace Capital and another financing company. OnePlace Capital is now seeing 90% of their business. This equates to an additional $12 Million annually.The company’s vendor prospects have also shown increased interest in the technology, specifically the reduction in the time it takes to go from credit approval to purchase order issuance or funding, giving OnePlace Capital an edge for closing new business.
- Operating margins have improved due to the elimination of shipping costs and the reduction in head count allocation per dollar financed.
OnePlace Capital’s shipping expenses have dropped to almost zero. It’s a rare case when the company has to revert to wet signatures and thus incur shipping expenses. Also, since the company no longer has to chase incomplete contracts or track down originals, it has reduced the touch time on each transaction, which increases the volume per employee. Based on the company’s numbers, it anticipates a 50% increase in productivity per employee for this task.
- Retention rate of contracts has improved.
For all of the electronic signature contracts, the originals are housed in a UCC Article 9 –105-compliant vault that maintains all originals. This provides the organization the peace of mind in knowing original contracts are safe, secure and protected over the entire lifecycle of the transaction.
- Added contract flexibility allows for increased post-signature management.
The company has multiple options available for executing further contract activity, including transfers, sales, securitizations, syndications, participations, etc. Additionally, it also has the flexibility to convert 100% of the electronic contract to paper if desired.
- A 10% increase in repeat business since implementation of the technology has been realized by the company, displaying the impact in how customers view the company.
About One Place Capital:
OnePlace Capital, a division of Bank Midwest, serves the healthcare industry by providing leading institutions and practitioners with more purchasing power to acquire additional and leading-edge healthcare equipment.
“Prior to adding this new technology, one of our vendors was splitting their transactions between OnePlace Capital and another financing company. OnePlace Capital is now seeing 90% of their business. This equates to an additional $12 Million annually.”
-Scott Stewart, President of OnePlace Capital