Are You an Equipment Finance Startup in the Incubation Phase?

by Kimberly Fumega

Kimberly Fumega Yeo is the Chief Solutions Officer for JDR Solutions, a service provider in the industry for more than 20 years. Kimberly has been in the equipment finance industry for 37 years.

Launching an equipment finance startup requires setting up a strong infrastructure. Kimberly Fumega Yeo outlines everything you need to consider when setting up the technology required to make your business thrive.

Starting your new equipment financing business requires building the infrastructure (people, process, and technology) to support it.

  • What equipment financing software will you use to manage your portfolio?
  • How and where will you host that software?
  • What resources will you obtain to book and maintain those contracts, apply payments, send invoices and perform collections duties if needed?

Exploring your options and making the right decision is critical during this incubation period to get your new company off to a strong start.

Equipment Financing Software

There are a few popular choices when it comes to equipment financing software and selecting the right platform can be a complicated decision. Choosing the one that is right for you involves some important factors.

  1. Cost

As a start-up, you may experience sticker shock with some of the software solutions. Or the cost for base functionality may be in line with your budget, but the added options necessary for your solution may put the price out of reach. You also need to consider the ongoing costs for licensing, hosting (if applicable), enhancements and release/version upgrades.

  1. Functionality

Determining what your portfolio will be comprised of will also come into play. Can the software handle complex transactions? What type of contracts will you have outside of the basic leases and loans; floating rate, term loans, revolving accounts, etc.? Does it have functionality for the asset types you will be financing, such as meter reads for copiers?

  1. Timing

You are ready to go, but is the software vendor? Implementation can be a lengthy process. A lot of set up for security, parameters, general ledger accounts, etc. may be required. Find out from them how long it will take them to get you up and running.

  1. Support

This may come as a surprise, but no software performs perfectly. You need assurance that when you encounter issues that they will get the attention that you need. As part of your vendor selection process be sure to speak with existing clients regarding ongoing support. Issues happen, but how thorough and responsive is the vendor in getting the issues resolved?

  1. Hosting

You have decided which equipment financing software you are going to use. Now who is going to host and maintain it?

When determining the best solution to go with, you need to consider the cost, as mentioned above. Not just for a production environment, but also UAT for testing enhancements and release upgrades, as well as month-end copies. Do you have the right level of resource in-house or is this something you can source externally through a partner? If you choose to partner, does the partner know the equipment finance industry and have experience in your selected software package?

As you think about your hosting solution, consider your security, support, and data requirements.

  1. Security and Monitoring for Hosted Environment

Your hosting provider needs to ensure you have a safe environment for your customers’ sensitive information. This requires routine checks, regular backups, and disaster recovery to ensure your infrastructure is SOC 1, SOC 2, and FDIC compliant. Your environment needs continuous processing, server health checks and 24/7 data monitoring to ensure your systems are always achieving peak performance.

  1. Support

Hosting can also come with some complications. The issues may be different, but the questions are the same for the support that you need.

  1. Reporting and Data

You will want to extract information from your software for reporting on your portfolio beyond the “canned” reports that come with your software. What are the limitations on how you can access your data? What is your data strategy? Can you run reporting directly against your software or do you need any additional data repositories?

  1. Portfolio Resources

When you are up and running and ready to put business on the books you will need to obtain the right resources for portfolio management. Ensuring that the contracts are booked correctly is imperative. As well as maintaining those contracts throughout the life of their term. These both require in-depth knowledge of leases and loans and how they can be configured in different software packages.

Just as you expect excellent support from your hosting and software providers, your resources need to deliver superior customer service to your clients. Sending them their invoices, applying their payments and assisting them with any inquiries they may have.



As you can see, there are a lot of things to consider during the incubation period of your equipment financing business. These decisions take time away from focusing on obtaining new business to grow your portfolio.

JDR Solutions can guide you through the process with our Incubation Services. Our onboarding process is an in-depth consultation that will lay the groundwork for collaboration between our team of experts and your staff.

We have extensive experience with the top equipment financing software platforms and will help you decide which one will best suit your needs. We provide hosting that is cost effective, gives you access to your data and is securely compliant. You will be supported by knowledgeable resources that will take ownership of any issues and provide a prompt resolution.

Our seasoned Portfolio Management and Client Services staff can accomplish all your back-office needs from booking to end-of-term. Knowledge and experience with the most basic to very complex contract types enables them to fulfill the necessary requirements/actions. We act as an extension of your team and are committed to providing your customers with exemplary service.

If you are interested in exploring any or all these services, reach out to us to schedule a consultation.





One Reply to “Are You an Equipment Finance Startup in the Incubation Phase?”

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
[email protected]
Susie Angelucci
Advertising: 484.459.3016
[email protected]

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.