How a leasing company from London scaled up its business and increased profit by 20% in 3 months
The earnings of leasing companies are affected by the speed of submitted application processing. The more applications they can process, the more money they will receive.
When you want to increase the speed of application processing, you can expand the staff. But this causes additional costs. In this case, we will tell you how a leasing company from London managed not only to optimize the scoring process, but also to reduce staff. This decision increased the company's profit by 20% in 3 months.
The source data
Company information: London leasing Company A works with small and medium-sized businesses. It offers customers motor vehicles and agricultural machinery for private and commercial use.
Problem: Managers of the company process applications of potential customers manually because the development of suitable software from scratch is expensive. The ready-made solutions that the company was considering were not able to fully handle all the tasks. This bogged down the company’s work and hindered its development. On average, two offices of a leasing enterprise were able to process 55 applications a day.
Objective: Increase application processing speed.
Tasks: Optimize the workflow.
What did we do?
Datapo API was used as the basis for developing their own scoring product. The company managed to save funds because the work was not carried out from scratch. As a result, we received a high-quality product that fully met the requirements for a quick and accurate verification.
The new scoring system was able to quickly verify potential customers:
- It helped to gather information about the transactions of a potential client as well as outstanding loans.
- Provided data on possible risks of cooperation with a future lessee: information on sanctions, liquidation, bankruptcy, and court cases.
The received information was analyzed and used to make the final decision: conclude an agreement with the lessee or refuse to cooperate.
What was the outcome?
Due to the integrated Datapo API system, the management of the leasing company resolved several issues at once:
- Automatization and improving of scoring processes. Now, instead of manual analysis, company employees can use the specialized software. Thanks to this, the management decided to reduce their staff and, as a result, payroll costs have been reduced.
- Optimizing the application processing speed. It grew by a factor of almost four. Now two of the company’s offices can process an average of 205 applications a day. This is taking into account the fact that the staff has been reduced.
- Improving the lessee verification. The possibility of human error is excluded because all analysis is performed automatically.
Reducing salary costs and increasing the application processing speed allowed the leasing company to increase its profits by 20% in 3 months.
In addition, the management is planning to implement the idea of scaling their business. A strategy to open three additional branches in the city is already being developed.