Contract Management
LeaseWave is comprehensive equipment leasing software that manages all the phases of the lease lifecycle. Phases may be included or excluded, as is relevant for the leasing model in question. The following are some examples.
Carrying Cost: interest billed against progress / installment payment for building an asset
Interim Rent: per diem rental is billed against each accepted asset (prior to commencement)
Lease Term: lease rental is billed for each asset on the schedule
Moratorium: restructuring of lease to accommodate payment holidays and adjustments
Un-booked Extension: evergreen leases can be set up for open-ended billing past maturity
Fixed Extension: fixed-term extensions following maturity of the lease
As end-to-end equipment leasing software, LeaseWave handles all lease contract needs including lease booking, billing, collections, cash management, lease terminations, etc. The accounting behind each transaction is automatically handled through user-defined templates that direct journal entries into appropriate accounts in the application’s underlying GL subsystem. Restructures, rebooks and complex terminations (with assets being bought out, paid off, returned, rolled over etc.) are all handled with flexibility and user-friendliness.
Manage complex, staggered installations:
Track and bill based on progress (deposit) payments made towards an asset
Bill interim rent on delivered assets while others on the schedule are installing
Handle complex open-ended deliveries and interim rent periods
Manage takedowns against credit lines and automatically create schedules
Build flexible lease contracts
Advance v. Arrears
Same as cash
Multiple bill frequencies: Monthly, Quarterly, Semi-Annually, Annually
Rentals due on any day of month
Step up, step down
Define “irregular” leases where each rental can be different than the prior
Manage leases with varied accounting treatments:
Direct Finance
Sales Type
Conditional Sales
Operating
Rebook leases at any point in time
Automatically reverse out the original booking entries
Change any information needed on the lease before rebooking
Information that does not require change does not need to be re-entered
Change any financial variable and let the equipment leasing software automate the restructure
Extend the term, change the payment amount, etc
Account for restructures accurately by only prospectively affecting income adjustments
Income recorded until the point of restructure is unaffected
Add / remove assets at any point from the lease
Set up any number of payoff quotes against each lease
Quotes can be for a partial portion of assets on the lease
Generate and send pro-forma invoices for terminations
Activate desired quote and automatically manage the accounting and operational ramifications
Each terminated asset can be treated differently
Assets can be bought out, returned to lessor, returned to vendor, etc.
Partially paid off leases can be automatically restructured
Set up the over-term treatment of the lease at the time of booking
Automatically go into “ever-green” month-to-month structure on maturity
Set up a different payment amount for over term payment, at the asset level
Alternatively, keep payments and invoices looking exactly the same as during term
Account for over term payments on a cash or accrual basis
Determine the portion of over term payments to take to income, reduce residual exposure
Automatically set up a booked extension of a lease (where extension term is known)
Tie a booked extension to its “parent” lease for compliance and reporting purposes