Providing the ideal software system
for stocking finance is no mean feat. Fred Crawley discusses the
main challenges facing providers of this technology
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When asked what really matters in software
provision for the stock funding (SF) industry, most point to the
need for ‘connectivity’.
This means ensuring that as much information
as possible being shared as quickly as possible between everyone
involved in transactions: a tall order, considering that SF
requires the sewing together of manufacturer, funder and dealer
businesses.
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By GlobalDataManufacturers need to know not just which
assets are in stock in dealerships, where precisely they are
located, and at what time, but also about the availability of
credit lines at those locations, and what charges are involved in
having them there.
Conversely, dealers need to know what stock is
being financed, how much it is costing, the timing of any
subsidised cost periods, and the ultimate terms of finance
agreements.
The burden of providing this information lies
on stocking finance providers. To achieve this they need to present
data on a web-based system, and preferably on which both
manufacturers and dealers can communicate.
The quicker and more thoroughly this
communication happens, the quicker payments are made, and the more
confidently all involved parties can predict and manage their
cashflow.
Another vital part of a software system in
stocking finance is ensuring it is open to alteration at any point
during implementation. Stock funding across different asset types
presents a wide range of different deal structures, financial
products and dealer requirements. Software must therefore be
adapted to the business lines of its user, and the needs generated
by relationships with both resellers and suppliers.
In addition, it is important for software
offered to a funder with international business to meet
accountancy, tax, legal and linguistic requirements in different
geographical markets while still maintaining the same basic systems
– or else all connectivity advantages are lost.
This flexibility needed to meet these demands
can be achieved through using an ASP model, wherein the provider’s
role as a conduit for all the user’s data allows it hard, practical
knowledge of a funder’s business, and thus a constantly up-to-date
idea of what must be added or changed within the systems in
use.
