Risk is an inherent aspect of asset-based lending and lease finance, but with the right strategies, you can transform a potential vulnerability into a decisive competitive advantage. As industry experts with decades of experience, Asset Compliant Solutions has seen the lending market shift and knows what strategies best suit the current landscape.
As leaders in the industry, we take seriously our responsibility to share knowledge and strategies so that all can build a framework that can be relied on for consistent success in our constantly evolving industry.
1. Honest analysis to ensure new strategic relationships are the right fit
Businesses today are more interconnected than ever, and every partnership has the potential to be a lift or a drag on a lender’s portfolio. By managing these relationships correctly, great outcomes can be achieved, but before formally entering a partnership, lenders must consider how their values align with the operating principles of the prospective partner.
ACS analyzes opportunities for asset lenders that go far deeper than surface-level metrics. We review the following factors and more to give confidence to the clients they need before making a final decision with potential partners:
- Understand partnership risks in critical areas like operational misalignment, compliance discrepancies, and data security vulnerabilities
- Develop strategies to mitigate risks with proper vetting process, service level agreements, and ongoing monitoring and communication
Once these areas are adequately explored and evaluated, both sides will better grasp the partnership’s viability, and the best path forward becomes clearer.
2. Peace of mind knowing you’ll stay a step ahead of all compliance regulations
Our industry becomes more regulated with each passing year. Regulatory compliance at every level helps avoid costly fines and protects your reputation and relationships while ensuring your assets are protected wherever they are.
ACS advises clients on how to stay current and compliant with all critical regulatory updates through the following practices:
- Designate a compliance officer, or an entire team if necessary, to focus specifically on monitoring regulatory updates where you operate, participate in industry associations, and conduct regular internal audits
- Implement compliance management systems that cover all aspects of your lending operations, create effective training programs, and utilize automated technology to assure compliance and avoid humor errors
By creating a dependable web of people, processes, and technologies focused on maintaining compliance, costly hiccups and setbacks can be avoided, and a reputation of trusted attention to detail can be gained.
3. Confidence knowing your reputation is protected by experts trained for any situation
Lenders know that brand reputations matter more today than ever, as new and longstanding relationships are all rooted in trust. How you and the people who act on your behalf behave echoes throughout your network, especially in potentially volatile situations like asset repossession.
ACS bolsters and protects our client’s reputation with every interaction, decision, and policy through the following developmental strategies:
- Cultivate a culture of integrity based on ethical guidelines that exceed industry standards for compliance, encourage employee communications, and leadership who demonstrates brand values with actions
- Prepare for crisis management with a cool head and steady hand, made possible by outlining response plans with clear protocols
- Conduct simulations of common crises to test and refine your response team’s capabilities
- Reach out to public relations professionals for overall development and specific guidance on reputational issues as they arise.
Effective reputational risk management resolves situations with dignity, instilling trust in your brand that can lead to repeat clients and a more robust referral pipeline.
At Asset Compliant Solutions, we’ve built our own reputation on trust and professionalism after 25 years of working with lenders of all sizes. Our market strategies are based on our deep pool of knowledge, which we happily share with those throughout our industry.
By understanding the inherent risks of our industry, you can better position your business, turning a potential vulnerability into a competitive advantage that sets the stage for sustainable growth in any market.