Tirana Factoring and Lease, Albania

  • Saves 4 hours per day with interest calculation and automated billing.
  • Significantly improved their operations‘ monitoring process.
  • Interest calculations are done with just one click.
  • Can take credit decisions immediately.
  • Manages leasing and factoring in one system and does not experience more data loss or inconsistencies!

Executive summary

TIRANA FACTORING & LEASE Sh.A. (TFL) is a non-bank financial institution specializing in factoring (invoice discounts, forfeiting, B/L financing, promissory note discounts) and leasing activities. Since being in the market since June 2012, the Central Bank of Albania has licensed the company for factoring and leasing activities.

TFL is a financial services company seeking continual growth in Albanian and international markets. TFL provides Financing of accounts receivable, Forfaiting, Reverse Factoring, Leasing, FOREX, and Factoring services to the local and international markets. One of the company‘s main objectives is to provide a fast service, which a financial company can not achieve without a suitable software solution. In global markets, the focus is to finance letters of credit. (source: TfL.al)

Having to offer a few financial products, TFL used a local software solution meant solely for accounting and did not meet all their business needs. Both leasing and factoring management were done manually using an Excel spreadsheet. The whole business management process took time, and there was a high probability of data loss and data inconsistency due to the risk of human error. The company needed a solution to help them manage leasing and factoring and have general accounting in one place as soon as possible.

3 main criteria for choosing the new software

  1. The main requirement was to have both factoring and leasing in one system;
  2. All daily operations should have had a record in software;
  3. The software had to be modern, easy to manage, and user-friendly.

In the summer of 2017, TFL chose Soft4Leasing and Soft4Factoring solutions implemented by the SOFT4 team.

TFL Business Challenges

Before 2017, TFL did most of its business management processes manually. As usual, the manual work has caused several difficulties and did not allow the company to grow.

Manual Work:

As the TFL employees had to do almost all of their business tasks manually, for example, for each disbursement, the company had to open an Excel file to calculate installments and interest calculations for factoring. It was necessary to open each one by one when TFL invoiced their clients or when TFL made a report. There needed to be more inefficiencies; it was tiring and time-consuming, and data loss and inconsistency sometimes occurred.

Separate Leasing and Factoring Business Management:

Factoring and leasing management were done separately on the Excel sheet; it did not support the company’s growth and could not offer flexibility to its clients. Not to mention that Excel-based calculations increased the chance of human error.

Slow Reporting:

As Ervin Kosta, the company’s Finance Accounting Manager, reports: the TFL team “were slow to provide the financial lease information to the third parties, we had a lot of information to classify and take the data to every file manually and every piece of data must be analyzed in another file.”

Solution from SOFT4

After deciding to have the new software solution implemented, TFL started its research, and Soft4Leasing&Factoring became one of the shortlisted solutions.

The company‘s representatives came to SOFT4‘s headquarters to meet us in person to discuss the project and conduct the initial diagnostics workshop. Shortly after the visit, the company agreed to proceed with SOFT4, choosing to have both leasing and factoring solutions implemented. The TFL’s team was excited to have a Microsoft technology-based solution with leasing and factoring in one platform.

The SOFT4Leasing &Factoring version SL54 2016 was implemented in 4 months. It was essential for a client to have the software ready and running at the beginning of their financial year, January 1st. Thanks to the modular structure, the company could have started with the essential modules for their business, and the company could add any other module once their business grew.

Adding a factoring module met their expectation of having it all in one software solution and managing factoring and leasing under one software. TFL makes their business management more efficient using the factoring software benefits such as automated calculation, accrual, and invoicing of interest and commission. They also enjoy collections worksheet functionality for debt management. From now on, the TFL team may have an overview of all valid factoring agreements at a single click and an overview of all open invoices on a single page.

Winning customers choose SOFT4Factoring

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