Manufacturer, Supplier and Dealer Management
As a provider of Asset Finance, do you help your partners increase their market share, or simply fund what they already sell ?
Recourse changes your Risk exposure, how does it change your Risk appetite?
Defining vendor finance
Increase partner’s market share
Improve customer retention
Risk sharing and Remarketing
Private label or JV
Reporting
Portfolio underwriting
Managing credit appetite and margin requirements across the vendor’s customer base, to enable them to grow their market share.
Measuring Direct and Indirect Vendor Risk
Direct - Direct finance lines
Indirect -Credit Buybacks, Loss Pools, RV Guarantees, Maintenance, Billing and Collecting Mandates
Assessing Vendor Risk appetite
How much business can you write, how much support do you think you need ?
Assessing sector and asset Risk
What countries and markets do they operate in ?
Barriers to entry ?
Competition ?
The risk of technological obsolescence ?
Monthly Manufacturer, Supplier and Dealer dashboards
Finance penetration
Volume
Margin
Manual and automated decision metrics - Approval, Refer, Decline.
Portfolio performance
Recourse support and adequacy
Annual review: Finance, Portfolio Performance, Recourse support and Finance penetration
Recourse Management: Buybacks: - Full buy backs, Gap based Buybacks, Repo risk, Top slice - horizontal or vertical ? Loss pools, cash or accruals ? Seeding Loss pools., Remarketing Agreements.
Added value products: Billing & Collecting maintenance, Billing and Collecting Mandates, Stocking facilities, Rental Fleet funding, Rent to Buy, Residual Value Guarantees, Operating Leasing, Portfolio underwriting, Syndication.
Do your customers, vendors and dealers see you as a source of competitive advantage, or simply as a panel funding option?
How integral is your Asset Finance proposition to your partners ability to close sales and grow market share?
Are you embedded in your vendors and dealers processes, or only engaged at the point of funding?
How do you improve your partners market share, customer retention, conversion, funding of services and deal size?
Is Asset Finance a growth lever or a passive utility?