Professionals throughout the commercial equipment finance and leasing industry provide extensive value to their organizations. Every position and function are integral components in building a world class organization. During the current industry transition, one of the functions that has, once again, attracted the spotlight is, "Portfolio Management."

Many individuals are unaware of all the responsibilities and benefits that a strong portfolio management team provides to the entire organization. (Many incorrectly assume that portfolio management functions are re-active with their main, or only, responsibility revolving around collections and litigation of non-performing assets.) Portfolio management is a pro-active function which:

• Provides real-time data on all assets (both performing and non-performing).
• Identifies potential asset concentration issues before they become concerns.
• Identifies equipment trends (both positive and negative) and works with originators to solicit and win the "right" opportunities.
• Provides real-time values of all types of assets. A strong portfolio manager has accurate data on the values of all equipment within the company's portfolio and a real-time comparison to net receivables based upon current market conditions.
• Provides industry intelligence through participation in the capital markets (both buying and selling assets).
• Provides credit information based upon multiple matrices (including different industries, geographics, and equipment valuation). A strong portfolio management team helps to mitigate future risk and to capture greater margins before transactions are solicited or funded.
• Provides expertise regarding residual positions and negotiating fair market value leases from a position of strength.
• Provides better re-marketing of assets.
• Provides progressive collection strategies that mitigate losses and encourage realistic recoveries.
• Provides predictive analytics which will increase production, improve asset quality, and ensure long-term sustainability.

Industry participants (of all sizes) are actively positioning themselves for success over the coming years by enhancing their portfolio management teams. They are using technology, professional expertise, stakeholder engagement, and automation intelligence (AI) to improve real-time data and efficiencies throughout their organizations. Strong portfolio management allows decision-making processes, strategies, and initiatives to be grounded with verifiable facts rather than antidotal feelings or outdated information. ("This is the way we have always made decisions".) A strong portfolio management team improves the "right" risk tolerance and eliminates uninformed risk taking. Portfolio (Asset) management is critical to long-term success within world class organizations. Three questions to be asked are:

1. Who is in charge of the company's portfolio management?
2. What data is being provided to the sales and credit departments to increase production and decrease risk for assets being funded in the short- medium- and long-term?
3. What must be true to enhance portfolio data collection and predictive analytics?

Wheeler Business Consulting works with banks, independents, captives, origination companies, and investors in the equipment leasing and finance arena. We provide training, strategic planning, and acquisition services. Scott Wheeler is available to discuss your long-term strategy, to assist your staff to maximize outcomes, and to better position your organization in the market.

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Phone: 410-877-0428 

email: scott@wheelerbusinessconsulting.com