Advanced analytics to secure your business growth

[vc_row][vc_column][vc_column_text]Big data is one of the terms that we hear more and more now in the business field. The importance of it is not even negotiable anymore: having the advantage to analyze real-time data allows you to be better educated about your leasing business processes and plan your next steps effectively towards growth. Of course, you need suitable tools for that. Let’s discuss Microsoft Power BI analytics solution for your leasing business.

Microsoft Power BI tool pulls data together and processes it, turning it into intelligible insights, with visually compelling and easy-to-process charts and graphs. That allows users to have a sensation of what’s happening in their leasing business.

Let’s overview Power BI reports in SOFT4Leasing lease management solution.

REPORTS OF NEW SALES

Application Flow charts with an indication of new applications received and movement in recent application stages (approved, declined, withdrawn, etc.)

Such charts will give you an early observation of peak in application flow, which may require higher efforts in credit and settlement teams, and may affect current cash flows. Or, an early indication of any slow-down in the origination process, which may require management attention.

Figure 1 Application Flow Charts

New Sales Actual/Target charts with the number of deals settled weekly. Data are presenting according to actual sales and target sales.

These charts will help not only to forecast business growth and set realistic and challenging targets for the future but also to observe any seasonality in business and plan accordingly.

Figure 2 Sales Charts

CURRENT PORTFOLIO ANALYSIS REPORTS

Net Outstanding charts will provide you with the Net book value of the overall portfolio at each EOM.

They will let you observe the trend of the financial asset which, in combination with “IRR” and “Portfolio run-off,” facilitates revenue forecasting.

Portfolio run-off (future five years) charts for outstanding capital balance current and rolling next five years will help to forecast future portfolio, given current run-off plus new sales trend.

REVENUE ANALYSIS REPORTS

Revenue Actual/Target charts with data from selected G/L revenue accounts, monthly actuals, and budgeted amounts. This chart will let you slice revenue numbers by product, brand, sales channel, and other dimensions to deeply understand your leasing business profitability and how each segment contributes to it and facilitate your business decisions.

Figure 3 Revenue Charts

PROFITABILITY AND CASH FLOW ANALYSIS REPORTS

Rate of return (IRR) chart with initial IRR (on lease commencement) and actual IRR (based on actual and future cashflows), lets monthly compare against historical values.

These charts will help you indicate actual yield on new business, compare against target IRR and go deeper into details to analyze how each segment performs.

This metric facilitates your pricing decisions, indicates deviation from target. Going deeper, you can analyze which segment contributes to higher/lower IRR, explore reasons, and take corrective actions.

Figure 4 IRR Charts

REPORTS ABOUT ARREARS

Current arrears aging reports with statistics about current arrears (as overdue amount) grouped by the number of days.

This metric will help you to observe an increase in delinquencies and take corrective actions early.

Figure 5 Current Arrears Charts

Arrears Trend chart shows the amount in arrears by aging bands, as at current and past months.

The trend of current arears, in combination with credit policy changes, gives you the impact of previous business decisions to the level of arrears (increase/decrease).

OPERATIONAL KPIs

Conversion Rate (current/previous month) chart, showing a ratio of settled deals as a percentage of applications available.

This sales performance metric indicates how the ratio of new applications to settled deals is progressing. This is an early indication of slow-down or speed-up of recent sales.

Figure 6 Conversion Rate Charts

Time-to-Approval (current/previous month) chart, indicating time between new application received until credit decision taken.

This operational metric will help you indicate how quickly the credit assessment process is and measure the impact of previous business decisions and process improvements.

These are main, and general Power BI reports, provided with SOFT4Leasing lease management solution. You can always have more reports and insights, according to your leasing business needs, as this solution is easily configurable.

Allow business analytics to contribute to your leasing business and gain a competitive advantage knowing ways how your business can develop and improve.

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