11 questions to ask when evaluating asset finance software

Selecting the right asset finance software for your business can be daunting. The right solution can transform your operations, helping you achieve high levels of efficiency, productivity, and agility. With an oversaturated market offering various solutions, how do you choose the one best suited to your organization’s needs?

While most asset finance software provides common features and functionalities, what sets one solution apart from the others often lies in the fine print. Beyond the marketing jargon and sales pitches, here are some key questions you must ask when evaluating solution providers.

1. Is the design asset-based vs. contract- based?

Most solutions today track leases and transactions at the contract level. An asset-based solution, however, treats each asset as a singular entry from origination to disposal, storing financial and transactional information at the asset level. This is crucial when you have large contracts with multiple assets. An asset-level design offers flexibility, allowing you to view individual asset performance and easily modify or partially terminate specific assets.

From a tax standpoint, an asset-based system lets you view your tax position versus your book position on each asset without drawing up the entire contract every time. It also enables you to see the cash-on-cash earnings, inflows, and outflows against individual assets.

In an asset-based system, assets can exist independently of contracts, allowing them to move between contracts as needed. For example, assets can be returned to inventory, refurbished, or assigned to new contracts, with the full history and asset-level profitability remaining available for reporting. This structure improves asset management and reporting accuracy, offering a clearer view of each asset’s performance over its lifecycle.

2. How can we make the software suitable for our unique business needs?

Standardization is a great goal, but enterprise-wide changes don’t happen overnight. Multiple third-party and peripheral apps build up your ecosystem, along with unique processes and workflows. Attempting to change everything overnight can lead to user resistance and change management issues, which is why many enterprise software deployments fail to achieve their full potential.

Look for a solution built on global standard technology principles at its core, yet flexible enough to be easily configured and extended. This approach allows you to maintain a standardized tech environment at the backend while addressing indispensable processes and workflows.

3. Are you cloud-native or ‘just’ cloud-ready?

While many solutions claim to be cloud-based, not all clouds are built alike. A cloud-ready application was originally developed for a traditional data center and later adapted for the cloud. Most available solutions today are cloud-enabled versions of old code with some cloud characteristics added.

Conversely, a cloud-native application is designed with cloud principles such as multi-tenancy, elastic scaling, and easy integration and administration from the outset. Built for the cloud, it offers full cloud benefits, including autoscaling, flexibility, and ease of integration.

4. Do you have a supporting ecosystem of products and value-added services?

Standalone asset finance management software is no longer sufficient. Modern businesses require a suite of complementary capabilities, from online customer and partner portals to data intelligence and developer tools. Multiple vendors offering disparate solutions can make integration with your complex IT landscape cumbersome.

Choosing a provider with a complementary ecosystem of solutions allows you to leverage these as your digital maturity and business advances. These add-on solutions are built with the same core technology principles, ensuring tight integration.

5. How end-to-end is the solution? Are there any dependencies?

Does the asset finance software cover your customer’s entire lease or loan lifecycle, from originations to servicing to remarketing? Does it allow you to extend the platform to cover any unique business process or market strategy you may have? Some solutions require separate investments in databases or operating systems, leading to integration hassles, upgrade management issues, and additional costs. A truly end-to-end solution minimizes these dependencies, ensuring a smoother experience.

6. Does the solution have componentized modules?

It’s valuable to know what capabilities you can add as you grow, even if you don’t need them right away. Ensure the solution’s modules and components interoperate easily. Sometimes, even modules from the same vendor, such as accounting and asset management, may not integrate well.

7. How do you support data analytics, data visualization and reporting?

An asset finance solution should bring your operations onto a comprehensive platform, making it easier to collate and consolidate business data. With the right reporting, visualization, and analytical tools, you can transform data into critical insights that drive operational efficiencies, innovation, and enhanced customer experiences.

Ensure your solution provider supports your data needs with integrated visualization and reporting capabilities. They should build a holistic data source from core business and third-party applications. Look for user-friendly solutions that require minimal manual intervention, reducing dependency on IT.

8. How do you support app development?

Applications are the lifeline of modern businesses, and agile application development is crucial. From extending current applications and functionalities to building new features or workflows, asset finance leaders must consider low-code application development as part of their broader strategy.

Ask your service provider how they support application development. A dedicated development team and supporting resources at your technology partner’s end mean you don’t have to worry about building, training, and maintaining an in-house team.

9. How often do you make new releases available?

Regular software updates help you keep up with industry changes, regulatory needs, and new technology. Ideally, your asset finance solution provider should offer consistent, scheduled releases that add new features, improve security, and enhance performance. Frequent, reliable updates keep your software current and competitive without interrupting operations. It allows your team to continually benefit from the latest innovations in functionality and usability.

10. Can the solution integrate easily with other systems?

In a complex tech environment, your asset finance solution needs to work smoothly with other essential tools, like CRM or general ledger systems. Look for a system with a service-oriented architecture that makes integration simple, allowing automated workflows across platforms. This capability keeps data connected and reduces manual work.

11. Does the solution offer great user experience and personalization?

You deserve an intuitive solution that offers easy navigation, visually engaging dashboards, and options to personalize their workspace. Robust solutions like Odessa provide features such as custom dashboards, self-help tools, and productivity enhancers (e.g., Excel export) that make work easier and more efficient.

By considering these factors, you can choose an asset finance software solution that aligns with your business needs, ensuring long-term success and efficiency.