Speed deal-making, contracting, funding today — and prepare your organization for an AI & automation-driven future.
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And we’re back.
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Welcome to another episode of Small Bites.
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I’m Greg Payne, Marketing Manager with Cox Automotive, and I’m joined, as always by my colleague, Andy Mayers, AVP of Deal Track Lender Solutions.
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Andy, it’s so great to be back with you now.
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In our last episode, we talked about structured steps and in today’s episode we’re going to be addressing stipulations documents specifically and more specifically how to ease and accelerate the upload and delivery process.
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And I imagine that stips upload and delivery is going to take that to a whole new level in terms of efficiency.
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Absolutely.
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When you look at the whole ecosystem of of funding a deal, Greg, stipulation management as I call it, consists of multiple components.
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The first is structured stips, which is we talked about last time, which is which document satisfies the stip.
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The next part of the process there’s really how do I collect those steps, like what’s the way to get those turned into digital images because all of our lending partners want those to be electronic.
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They don’t want paper anymore.
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Nobody wants paper.
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And then the second, you know, the third part of that is how do I get those stipulations delivered to a lender so they can evaluate that information down the road in the future, they’ll be stiff clearing.
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We’ll get to that at other time, you know, as the industry evolves.
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But if you really think about stiff management, the goal of step management is to speed up the funding process, right?
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By eliminating clearing the steps faster for a dealer and a lender, contracts don’t wait when they get into the the funding queue for a lender.
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And traditionally that’s what happens.
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A dealer will send a funding package in with some of the stipulations, but at that point, I can’t really verify the income because what they sent me doesn’t match what’s on the application.
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It slows down funding.
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So everything we’re talking about is really speeding up the process for funding, which is a better experience for the dealer, better service from the lender.
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Everybody wins in that situation.
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So let’s break that down a little bit.
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As I mentioned Stip upload, we talked about it in just about every, you know, conversation you and I’ve had.
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We have consumers doing financing components now they’re shopping online.
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We need to tell them how do I do things to to speed up the process And one of those things is having the customer provide documentation that’s required by our lenders.
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And those are stipulations.
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Step upload allows the in our system allows both either a dealer to use AQR code, take a picture or something or actually on our sites allows a consumer to take a picture and upload it.
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And both of them lend land in the same deal jacket within our system that a dealer can then forward to a lender and they can do that with what we call STIP delivery.
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Stip delivery, after I get an approval on the lenders decision page, I can actually take AQR code upload the stip, but not only once I have it uploaded, I can then send it to the lender and have them review it before it actually goes for funding.
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So let’s say Greg, that we required some proof of income from you and your income actually was under reported, which happens sometimes a lot of consumers online under report.
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Well, now that the lender knows that Greg’s income, his actual income from the the stipulation actually gives a lender an opportunity to actually lend more to that customer potentially or change their structure.
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So a lender can actually restructure their loan offer based on your income.
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So step delivery is really important because it does two things.
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It allows the lender to re evaluate the loan at the time of credit, prior to the contract package.
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It also allows the lender to clear a step so that when a dealer actually submits their funding package, they know they won’t have any issues, nothing’s missing and things like that.
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So very important tools to drive efficiency and I think they’ll really help our lenders.
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And you know, I think it’s where we’re going as an industry.
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If you want to be fully automated, you have to have automated STIP.
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You know, you have to have stip clearing, you have to have STIP delivery, you have to have the ability to upload the stip, and you have to know what those stip documents are.
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Well, all right, that sounds like a great enhancement that’s going to be beneficial to all interested parties, the lenders, their dealer clients, and the consumers looking to purchase their next vehicle.
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Andy, thanks so much again for giving us this download on Stips upload Delivery.
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It’s really been a pleasure as always.
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And thank you again to everybody tuning in.
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Join us next time when we talk about the next topic in our Small Byte series, Linda referral.
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Now, if you have any questions about steps, upload and delivery or any other topics that we’ve discussed previously in Small Bytes episodes, please don’t hesitate to reach out to one of our lender solutions experts.
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Until next time, have a great day.
