Blog – 5 steps to automate your docs

Let’s face it – manually creating and managing lease documents is slow, error-prone, and resource-intensive. With shrinking margins in the equipment finance industry, finding ways to streamline operations isn’t just nice-to-have, it’s needed for survival.

If you’re like many lenders we work with, you’ve probably got that one operations person who knows exactly which document templates to use based on equipment type, state regulations, and product offerings. But what happens when they retire or leave? That’s a serious business risk.

Here’s a practical, step-by-step approach to automating your document process – without turning your entire operation upside down.

Why document automation matters now

Before diving into the steps, let’s understand why doc automation has become so important.

Efficiency – With margins tightening across the industry, you can’t afford the manual back-and-forth that traditional document handling requires, especially for small-ticket deals.

Accuracy – Human errors in documents can cost you dearly. As Jamie Haver (Happy Mfg) pointed out in our recent webinar, “When pursuing default remedies, your documentation better be as tight and right as it can be, otherwise good luck.”

Customer experience – Today’s borrowers and vendors expect speed and convenience. Making them wait for documents creates friction that can cost you deals.

Regulatory pressure – While federal regulations may have eased in some areas, state-level compliance is becoming increasingly complex.

Scalability – Relying on tribal knowledge for document selection creates major business continuity risks.

Step 1: Map your pre-document workflow

Before you can automate documents, you need to understand what needs to happen before docs can be generated.

Create a flowchart (using tools like Lucid Chart, Miro, or even pen and paper) that maps out your entire process from application to document generation. Include every validation point, decision tree, and data source.
Having documented policies and processes is critical. If they’re not all documented, it’s hard even to get the ball rolling.

Your flowchart should include:

• Credit decision points
• Fraud checks
• Data validation requirements
• Authentication needs
• Regulatory compliance checks

This visual representation helps identify bottlenecks and missing data points that currently prevent automatic document generation.

Step 2: Start small and focused

Don’t try to automate everything at once. As David Trost, Director of Product at Northteq, advises, “Start with your most used contract like an EFA in a non-disclosure state.”

This approach lets you:

• Build momentum with early wins
• Learn from a simpler use case
• Create a template for more complex documents
• Show value before expanding

Work backward from your document to identify what data you need, where it comes from, and how to capture it along the way. This methodical approach prevents the common pitfall of having hundreds of slightly different templates.

Step 3: Solve the missing data problem 

One of the biggest obstacles to document automation is incomplete data. Make sure you take time to identify the following:

• What information is typically missing when you reach the document stage
• Who should be responsible for providing that information
• How to capture it efficiently

For equipment details, consider creating self-service experiences where vendors or borrowers can input equipment information directly. This eliminates the back-and-forth of emailing invoices and manual data entry.

Technology integrations can also help. Services like Middesk or LexisNexis can automatically validate business information and authorized signers, reducing the manual verification burden.

Kaheres Hahn from Finova Capital noted, “When automating origination processes, we’re using Experian for credit validation, Middesk for business validation, and Dun & Bradstreet for additional business information.”

Step 4: Validate data and prevent fraud

With data in hand, you need confidence that it’s correct and legitimate before generating binding documents.

Ginger Lemon from DocuSign explained, “DocuSign offers different levels of authentication – from simple SMS verification codes to knowledge-based authentication questions to government ID validation with liveness checks.”

The level of authentication should match the risk profile of the transaction. You don’t want to make it too difficult to transact, but you need appropriate security for compliance purposes.

These tools help verify that:

• The borrower/business exists and is in good standing
• The signer is authorized to execute agreements
• The equipment information matches what was approved
• There are no red flags for potential fraud

Step 5: Implement dynamic document generation

Now, you’re ready to automate the actual document generation process.

• • Create a rules engine that selects the appropriate templates based on variables like:
    • State location (for disclosure requirements)
    • Equipment type
    • Financial product structure
    • Transaction amount
  • Ensure all calculations (like APR and payment structures) are accurate and compliant with relevant regulations
  • Build conditional logic that includes or excludes specific clauses based on transaction details

Advanced document automation tools can dramatically reduce your template count by using one master template with dynamic sections rather than hundreds of separate templates.

As David Trost explained, “Instead of making 400 templates, you’re going in and modifying a paragraph at a time. You still have that one template that you’re just switching little bits of language in and out of based on the business rules within your system.”

The bottom line

Document automation isn’t just about technology – it’s about process, data management, and understanding your business requirements. By following these five steps, you can create a more efficient, accurate, and scalable approach to document generation that improves both your internal operations and customer experience.

Remember to start small, focus on process first, and build incrementally. Your operations team (and your margins) will thank you.