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June 2020
News from
Wheeler Business Consulting:
The commercial equipment leasing and finance industry is quickly moving into phase two of its reaction to the Covid-19 pandemic. The first phase included deferment and forbearance agreements. Phase two will include the hard reality for many portfolios and difficult decisions for management teams, bank lines and investors. Industry veterans have projected that lessors and lenders will have a much clearer indication of the true impact of the full, and now partial, closure of the U.S. economy by mid-summer. All indications are that delinquencies and write-offs will increase for most all participants. The question remains: to what degree will individual portfolio be affected? Depending upon industries and credit qualities, some portfolios will have minor increases in delinquencies and other will have more severe, and possible devastating, deterioration.
Portfolio management has quickly become a priority. After many years of historically low delinquencies and write-offs, the industry is back to the basics in its appreciation for collection policies, equipment re-marketing expertise, and asset quality. The companies with accurate portfolio data are positioned to make stronger decisions and to present verifiable plans to their investors and bank partners. However, the reality is that some banks and investors, especially ones that have provided relatively new money to the industry, will not be inclined to weather the storm and will exit the industry. The impact of just a few departing banks and investors will affect all participants; therefore, every industry participant must have a plan "B" in the event their funding lines and/or investment dollars are decreased.
Wheeler Business Consulting is working with clients to prepare for multiple scenarios, to dissect current portfolios, and to identify possible solutions to anticipated challenges.
Wheeler Business Consulting has been engaged by a name-recognized participant in the industry to purchase portfolios in various equipment and industry niches. If your company is looking to re-balance its internal portfolio and/or sell a portion or its entire portfolio contact Scott at 410-877-0428.
Wheeler Business Consulting works with management teams to further develop their talent, to identify and strengthen weak links within their organization, and to improve overall efficiencies.
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.
Comments and suggestions are always welcome.
Scott A. Wheeler CLFP
Wheeler Business Consulting LLC
Phone: 410-877-0428
Email: scott@wheelerbusinessconsulting.com
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