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Custom Portfolio Benchmark Report:
Small-Ticket Finance Lender
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| SITUATION:
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Senior vice president, captive construction equipment lender
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| CRITICAL ISSUES:
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- Operational processes in the credit department need improvement.
- Risk level of the portfolio needs to be explained.
- Performance compared with an objective source should be understood.
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| REASONS:
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- Foreign parent is unfamiliar with the U.S. finance market.
- Lender’s risk level versus that of U.S. peers needs to be demonstrated to maintain parent funding.
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| PAYNET:
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- We developed a custom portfolio benchmark report.
- We demonstrated the lender’s credit delinquency versus that of an anonymous peer group of comparable construction lenders.
- We compared the lender’s market share and portfolio growth to those of peers.
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| RESULT:
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- Heightened credit policy rules were imposed for high-risk borrower types.
- A business model for a foreign funding source was validated.
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