Pieter Wahlen and Dieter Lens are the founders of LeaseMasters, which provides lease solutions and pre-financing for end customers, suppliers and manufacturers.
We spoke to them about how they are leveraging Cashflow Analyser - a Yolt solution built on open banking data - to accelerate business growth.
Hello and welcome! To start off, what role does data play in leasing?
In the lease market, everything revolves around data: valuation of the lease object, depreciation, duration, lease amount, turnover, profit, growth figures, market expectations, and much more. Our ability to collect data and convert it into actionable insights is a competitive advantage, which allows us to see possibilities that others don’t see and find solutions that others don’t have.
For example, the financial health of an applicant naturally plays a very important role in our decision-making process. That health is largely determined by the cash flows. In other words, how much money is actually going in and out of our applicant’s account each month? What is fixed and what is variable? What are costs, what are investments, and is revenue recurring or one-off? And how money actually spent – categorising expenditure is also a useful thing to know. These insights are often difficult to get, but crucial for credit assessment.
"Our ability to collect data and convert it into actionable insights is a competitive advantage, which allows us to see possibilities that others don’t see and find solutions that others don’t have."
Can you walk us through how you get that information with Cashflow Analyser?
Cashflow Analyser is a Yolt solution built on open banking technology that enables us to quickly view applicant account data including monthly cashflow.
We send an invitation by email from the Cashflow Analyser portal. The applicant clicks on the button and with a few steps they share the transaction data of their bank account. Yolt then converts this into a clear report which we can view in the portal. This is easy to do for the applicant and gives us the information we need in minutes. We don’t see individual transactions, just the aggregates per month. We often explain this to customers, and having that extra bit of knowledge gives them more comfort about our process.
What do you gain from the insights in the report?
The report is based on account transactions and information over the past 18 months. This means it is much more powerful than annual figures or credit reports, which are still very important, but often outdated by the time you see them. In addition to the high quality of data, it immediately sends us a strong signal about how serious the applicant is in their application, because you will only share bank data if you actually want to do business and if you have nothing to hide. And finally, cash flow doesn't lie and you can't cheat with it, so it decreases the risk of fraud and improves our decisions.
Is Cashflow Analyser alone enough for you to make applicant credit assessments?
It is a very powerful tool in our decision-making process, but we still use other sources of information. We also combine the data in Cashflow Analyser reports with the lease amount, the term and future plans. This helps enormously to get a complete picture of the financial reality of an applicant. Combining several data sources is extremely important especially when there are large amounts of money at stake.
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