After a year-long pilot program, APPROVE, a software-as-service (SaaS) solution powered by a network of equipment financing companies, officially launched this week. APPROVE is a product of KWIPPED, a technology innovator in B2B equipment e-commerce.
The new solution promotes equipment financing at every point in the sales process through a digital quoting engine, with financing companies competing to earn opportunities from equipment buyers on APPROVE’s network.
“Our participating lenders gain unique and invaluable access to customers who are committed to acquiring equipment and eager to secure financing to complete the process,” Robert Preville, founder and CEO of KWIPPED, said. “These lenders gain the opportunity to bid on a much larger pool of higher quality equipment financing applications, thus giving them the potential to expand their market share.”
Preville said APPROVE’s lenders will be able penetrate new markets much more profitably using this new financial technology.
APPROVE’s lender network currently includes 17 equipment finance companies that collectively offer coverage across a spectrum of credit profiles and asset classes. Equipment financing brands such as Balboa Capital, Triton Capital, New Lane Finance, North Star Leasing and Time Payment are among APPROVE’s lending network participants.
“During our extensive pilot program, our data showed originations increased by 26% when financing was offered at the point of sale,” Preville said. “That point could be on a website, a link in a product quote, email or text, in stores or even on a tradeshow floor. We talked to sellers in various industrial, medical and food-service sectors who were missing opportunities to close transactions when equipment buyers turned elsewhere for financing. We also learned many lenders were seeking an easy fintech solution that would help them grow their financing business in new markets.”
According to Preville, algorithms within APPROVE reduce the financing application process by matching buyer credit profiles with the most appropriate financing options.
APPROVE is part of the burgeoning SaaS marketplace — a market that has been driven by the ongoing push for enhanced efficiency. This demand has only grown more urgent over the past year as the COVID-19 pandemic forced both consumers and businesses to adopt SaaS technology to remain solvent and survive.
Writing in February, Yi Jin, a member of the Forbes Communication Council who has analyzed the growth of SaaS, noted the service was expected to generate revenue of approximately $233 billion by 2022 and revenue of $369.4 billion by 2024.
“That’s an increase of $200B in five years and an estimated compounded annual growth rate of nearly 17%,” Jin said.