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Custom Portfolio Benchmark Report:
Major Captive Finance Lender
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| SITUATION:
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President, major captive office equipment finance company
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| CRITICAL ISSUES:
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- The source of a recent sharp delinquency increase for small-ticket leases needs to be determined.
- Portfolio quality versus that of the comparable peer group needs to be determined.
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| REASONS:
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- Lender needs to explain portfolio performance to parent.
- Lender needs to know the source of problems to make organizational changes.
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| PAYNET:
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- We developed a custom portfolio benchmark report showing operational performance versus that of comparable peers.
- We proved the source of delinquency to be misapplication of payments by identifying multiple contracts for same borrower and then looking at delinquency occurrence for each contract.
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| RESULT:
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- Operating costs were reduced by improving the payment-processing function.
- Collecting on past dues increased cash flow.
- Results led to retraining of payment-processing staff.
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