Risk Management

Following are some credit, residual and other risk issues to consider:

Financial Partner Risk

  • Stable, long term history
  • Funding capabilities/partners
  • Industry experience
  • Documentation requirements
  • Training capabilities

End User Customer (vendor customer)

  • Customer satisfaction data
  • Sales force experience
  • Vendor sales force comfort with sales process

Investment Risk

  • Credit support
  • Pricing support, blind discounts
  • Residual support
  • Remarketing support

Residual Risk

  • Mezzanine residual support
  • Residual recovery sharing
  • Expense reimbursement
  • Recovery process

Process Risk

  • Application and credit review process
  • Funding process
  • Customer service and collection process
  • Remarketing capability