The challenges you face

For factoring, invoice discounting, asset based lending and commercial finance companies the effective management of client and debtor risk is critical. The nature of this type of lending means that the challenges are significant:

• Collateral is dynamic and can change quickly.
• Borrowers have the ability to manipulate the collateral reporting. They may perform "fresh air invoicing", bank debtor payments or falsify returns such as ageing reports and financial statements. No other form of business lending gives such scope for the borrower to mislead the lender.
• Bad debts have a significant impact on the profitability of the commercial finance company and go straight to the bottom line. By their nature, they are unpredictable and can have a devastating effect on the financial results.

Detecting risk isn't easy

If you have experienced problems with a client and have lost money, then it is likely that, with hindsight, the warning signs were there. Unfortunately the warning signs can't always be identified soon enough. That's because:

• Information systems do not sufficiently highlight the issues.
• The information isn't reported frequently enough and isn't timely.
• The information isn't sufficiently visible to the relevant people.
• The information isn't acted upon.

You need robust & integrated systems

Risk and the potential for fraud are always issues of concern and never more so than in the present economic climate. A finance company needs to be constantly on alert and have the people, processes and information systems in place to meet the risk management challenges.

Managing exposure with monthly system reports and a collection of spreadsheets is not a sufficiently reliable way to address this issue. Commercial finance companies need robust, integrated, proven information systems to manage risk.

We specialise in risk management

Our experience is unsurpassed and we dedicate ourselves to supporting the commercial finance industry. We provide a suite of services and software applications which we have developed over 15 years. Find out more about how we can help you meet your risk management challenges.