Vision Implementation Case Study
All Points Capital Corporation
a Wholly Owned Subsidiary of Capital One Bank

Organizing Origination

How All Points Capital Corp used the Vision Commerce Framework to streamline application processing.

All Points Capital Corp. (“APCC”) is a leasing subsidiary of an S&P 500 Bank. APCC was established in 2000 and has grown to manage over $800 million in assets. APCC focuses on three business segments:
 
  • Financing for vehicle lessors – APCC funds a wide array of vehicles and provides back office tools from the credit application through the entire billing and collection cycle.
  • Financing for equipment lessors – APCC offers a full array of flexible equipment lease and finance products including finance leases, equipment loans and portfolio purchases for transactions ranging from $50,000 to $3 million.
  • Direct leasing – APCC has an internal sales force focused on equipment leasing with flexible terms and creative financing options.

During its rapid growth APCC utilized a collection of non-integrated systems and manual steps to deal with a volume that grew to more than 1000 applications per month. Realizing that further growth depended on the elimination of manual steps and full integration between its systems, APCC chose Vision Commerce to implement a consolidated lease origination system.

The Vision Commerce framework includes all the standard components for lease and loan origination, but its real strength is the capability to quickly modify the user interface to support the specific business needs of the customer. Vision Commerce has the technology and personnel to define an optimized process and rapidly implement a customized solution.

Designing the Solution

Working together, a team of APCC and Vision Commerce personnel established the following objectives for its new system:
 
  • Enter the information once – re-keying information not only wastes time, but it leads to inaccurate information. From proposal through booking, the user never needs to rekey application information in Vision. Additionally, Vision is constructed to maintain master records for all companies (vendors, lessors, lessees, corporate guarantors, manufacturers, funders, etc.) and individuals (lessees, guarantors, related parties, etc.) allowing reuse of existing information.
  • Enforce rules for the flow of applications and entry of data – Vision includes support for unlimited application statuses and provides for the definition of standard processing rules that define how applications can move through the statuses. By user role and status, Vision enforces rules for data viewing and entry to the field level. APCC defined 17 statuses and six user roles to satisfy its business requirements.
  • Define application formats for each business segment – Vehicle applications for consumer lessees require much different information than equipment leases for established businesses. APCC defined 13 application formats tailored to meet decisioning and documentations requirements.
  • Clearly assign responsibilities – Each application is assigned an owner, person currently responsible, and credit processor. Each user views a list of applications based on role and application status.
  • Provide comprehensive and integrated pricing – Vision constructed three separate pricing tools to support the three APCC business segments completely eliminating the need to go outside the origination system to generate pricing information. These tools include support for skip, seasonal, and fixed principal payment streams for any combination of term, rate, and purchase option. For the indirect applications, additional calculations show lessor profitability and lessee rates.
  • Track Lessor and Vendor status – With more than 500 lessors and 4,300 vendors, APCC needed a single place to record company information. Vision was enhanced to allow APCC to obtain credit reports and maintain status information on these business partners.
  • Facilitate and capture credit evaluation – Credit managers have access to information from the consumer and business credit reporting agencies, Secretary of State sites, the lease accounting system, and prior applications when evaluating and documenting their credit decisions. An extensive screen allows the manager to document all aspects of the credit decision process and generate worksheets and reports for management review.
  • Produce documentation – All lease documentation is generated by the system and archived.
  • Seamlessly transfer information to the lease accounting system – when an application is ready for funding, all information (including asset, guarantor, and lessee data) is transferred into the APCC lease accounting system.

With the desired system defined, Vision Commerce developed and presented a complete design document describing the functionality of each screen and function in the system. With approval from APCC, customization work began and was completed within six weeks. The customization process was transparent with full access given to APCC personnel.

Migrating the Data

A key task for successful implementation was the cleanup and transfer of information from existing systems into Vision. APCC had processed 35,000 applications from 500 vendors with more than 45,000 lessees and guarantors. Because the previous systems did not enforce data integrity rules, there were thousands of duplicate and orphaned records. Accurate information was critical to the success of the implementation because the credit review and documentation processes depend on the quality of the available data. Given the diversity of relationships, APCC needed to understand potential exposure across all its business segments.

Working closely with APCC, Vision developed scripts to identify duplicate and orphaned records so that they could be corrected prior to transfer. VC also developed a data migration component that populated Vision from the existing systems. This component was used to successfully transfer all application records in less than four hours during the cutover to Vision.

Security Requirements

Because APCC is a subsidiary of large National Banking institution, the Vision implementation had to satisfy the security requirements of a regulated institution.

Going Live

After the customization was complete, Vision Commerce conducted several data migration tests and walked through the system with APCC personnel demonstrating all functionality and making minor interface modifications as required.

Because Vision is web-based, no modifications were required to the workstations at APCC. All IT setup was done on a single server installed and configured at a remote location housed by the Bank.

On Friday, August 2, 2003, the old APCC origination systems were shut down. Over the weekend, the Vision Commerce and APCC personnel transferred existing application information into Vision and thoroughly tested the Vision interface. On Monday, August 5, 2003, all three APCC business segments began using Vision exclusively for lease origination activities. Vision Commerce personnel remained onsite for three days to provide support.

Results

Vision was implemented at APCC in August 2003. Between August 2003 and February 2004, APCC has used Vision to process more than 6000 applications generated by their three business segments. Vision has reduced application processing time, eliminated duplicate entry of company and individual information, standardized processes and documentation, reduced post-funding errors, improved exposure evaluation for APCC improving overall operating efficiency.