Auto lending is a valuable service for dealerships, with 85% of new cars purchased in 2018 financed rather than purchased outright. Dealers require fast funding to stay cash flow positive, so it’s important for lenders to strive for the quickest possible turnaround.
Every day, lenders must perfect the juggling act of staying competitive through speedy funding while still focusing on accuracy and compliance. But if you think of day-in-and-day-out contract processing as juggling sandbags, peak loan volume months are more like juggling torches.
That’s when the combination of digital and paper contract processing can strain the resources of even the most efficient lending operation and its staff. When you’re facing a significant increase in volume, it become harder than ever to maintain compliance with state and federal regulations while trying to speed up data entry without introducing errors.
Finding the balance between accuracy and speed
Before you can maximize funding speed, it’s important to figure out how and where your processes might be slowing things down. When it comes to processing paper contracts, most lenders find that manual data entry, validation and storage of documents are where things get off-kilter.
Working with a reliable technology partner to handle these tasks is a cost-effective way to increase your speed to fund without sacrificing accuracy or compliance.
Want to learn how? Download our eGuide.