Portfolio Management The Portfolio Management area of LeaseTeam's
back-end system provides equipment finance companies with a flexible, feature-rich accounting and asset management software solution. This successful, unique design was developed to effectively manage the unique complexities that arise from various types of contracts, such as loans, TRAC leases and true leases. The system is highly configurable,
allowing it to work as well for asset-based equipment lenders as it does for small-ticket leasing companies. Here are just a few of the areas this software application handles with ease:
In today’s competitive environment, more and more equipment finance companies are providing their customers with
loans as well as leases. To become more diversified and profitable, successful finance companies need to be able to offer both — and to be more efficient, they need a single software solution that can accurately handle both leases and loans. If you’re still processing loans using conditional sales lease accounting, it’s time for you to consider a better way: LeaseTeam’s Loan Management tool.
LeaseTeam’s variable rate tool increases the variety of contracts lenders can provide to their customers by giving them the ability to tie those contracts to an indexed rate such as LIBOR. Simply update the index rate on the contract, and the software automatically uses the new rate to calculate a new payment amount that will amortize the remaining balance over the remaining payments.
This application allows users to easily keep track of the many details of the equipment, including depreciation and taxes.
The Equipment Template tool allows users ease of equipment entry through the use of standard codes for specific types of equipment, as well as a simple process for equipment entry.
After entering the contract information in the front-end system, you can quickly upload it to the back-end, then book the business, which creates a journal entry and starts the portfolio management process.
The portfolio management application allows you to capitalize IDC (initial direct
costs -- for example, broker fees). The capitalized IDC is then amortized over the life of the contract using either a straight line or implicit rate methodology. Contract Amortization
Upon booking a contract, an amortization schedule is created which will be the basis for future earnings. From that point forward, earnings are recognized on a month-by-month basis.
Gain flexibility with the contract rewrite function by changing any of the economic characteristics of a contract. All general ledger entries are made and the amortization schedule is "rewritten" on the effective date of the rewrite. In this way, mid-stream contract changes can be entered and accounted for without having to worry about distorting earnings recognized to date.
LeaseTeam’s system allows you to easily create a renewal schedule that begins invoicing when the contracts have reached maturity. This allows the lender to continue billing the full amount of the regular payments indefinitely. The payments made beyond contract maturity can be set up to be recognized as income or serve to reduce a residual position. Contract Letters
Our letter functionality allows you to create and customize letters in Microsoft Word via a convenient database toolbar. Letters can be printed or sent by e-mail as a Word attachment, and customized letters can be saved as templates for reuse. Contract Payoff
A contract payoff is simply a worksheet which allows the lender to determine how much to sell equipment for in case of a request for early payoff. The user can set up a formula to use in order to calculate the desired return on the payoff. If the borrower agrees to the payoff quote, the software can also handle the equipment sale.