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.