The Equipment Leasing and Finance Association launched an initiative to educate its membership about the business benefits of adopting electronic documents known as e-chattel paper. The initiative will encourage members to use e-chattel paper and adopt digital best practices in lieu of relying solely on the paper-based lending processes that have been prevalent in the equipment finance industry.

Over the next 18 months, the association will collaborate with eOriginal, a provider of electronic document management services, and others, to promote widespread adoption of e-chattel paper in equipment leasing and finance transactions.

“In our increasingly digital world, the time is ripe for equipment finance companies to consider converting to electronic chattel paper,” said Ralph Petta, ELFA president and CEO. “While some member companies have already done so, others have questions about the adoption process. We are pleased to launch this important effort to educate our membership and their business partners about why and how to go digital with e-chattel paper.”

Adoption of the use of e-chattel paper can help simplify the loan origination process, reduce sales cycles, allow the ability to digitally sign and manager leases from state of financing to securitization and accelerate funding cycles.

The ELFA will identify and offer solutions to the challenges of adoption that are common among ELFA member companies including lack of legal knowledge associated with e-chattel paper, how to pick a platform, the need for education regarding short-term and long-term cost impacts and the enablement of direct access to the technology required to create and manage electronic leases and contracts.

“I’m pleased that our association sees the adoption of electronic documents and electronic chattel paper as an important advancement in transacting business,” said Dave Schaefer, CEO of Mintaka Financial and chair of the ELFA board’s working group on electronic documents. “It’s time for our industry to utilize these tools to increase lessee satisfaction, document transactions faster and improve the movement of chattel paper.”