Not sure your lenders are interested in eContracting? Cox Automotive research shows that the need and demand for eContracting efficiency is high for both dealers and lenders. In many cases, lenders are waiting for their dealers to get set up for eContracting so they can all benefit.
Here are three reasons that lenders appreciate eContracting solutions:
1. Improved Accuracy
The last thing lenders want to do is reject the funding package a dealership sent them because of errors or missed signatures. More and more lenders are eContracting with their dealer customers because the technology helps reduce errors that can lead to re-contracting.
When you’re working with multiple systems, re-typing and re-entering data, there’s a possibility that human error can lead to inaccuracies. Integrations with other dealership systems help eContracting platforms boost contract accuracy by reducing or eliminating the need for data re-entry.
eContracting solutions are also designed to verify data entry in real time, flagging potential errors and missing signatures before the contracts are even submitted.
Additional integrated functionality can make it easier for a dealership to submit accurate contracts. For example, lender checklists help ensure that the contract package is complete with digital copies of all required forms upon submission.
When the lender needs more information for funding after the initial submission, eContracting can even support uploads of trailing documents to keep the review process moving smoothly.
2. Faster Processing
With eContracting, contract data can be pushed directly into the lender’s loan origination system (LOS), which speeds up the review process and allows for faster funding. Compare that to many manual processes where documents must be sent to the lender by a combination of overnight delivery and fax, which takes an average of five days in transit.
Ideally, you want a complete digital funding package that keeps all deal documents together, saving the lender the time they would have to spend matching documents that arrived by separate methods.
With eContracting, the lender gets all of the contracting documents immediately, which gives them the capability to fund as fast as the same day.
3. Better Service
Finally, lenders are eager for dealers to submit contracts digitally because it gives them the opportunity to provide faster and better service, which is key for strengthening their partnership. They understand that improving a dealership’s cash flow is vital—and faster loan review and funding helps accomplish that for their dealer customers.