LPM – Finance Companies & Run Outs
Over the last ten years LPM Outsourcing has helped Cisco Capital to meet their vision and deliver their aims and objectives - Kieran O'Brian, Cisco Capital
Finance Companies & Run Outs
Service Overview
LPM Outsourcing can provide back office administration and accounting services for:
- New finance companies – requiring efficient and immediate back office services
- Established finance companies – looking to adopt a flexible and effective solution to changing requirements
- Portfolio run outs – divesting their non core business activities
Outsourcing Benefits
New Entrants & Existing Portfolios
- Speed to market
- No major investment costs
- Dedicated & experienced resource
- Proactive arrears management
- Enables you to focus on core activities
- Resolve headcount restraints
- Rapid reaction to the introduction of new products
- Integrated Business Continuity & Disaster Recovery programme
- Agreed KPI’s
- Flexible System
- Multi Currency
Portfolio Run Outs
- Reduced operating costs
- Data migration capabilities
- Dedicated & experienced resource
- Proactive arrears management
- Improved cashflow
Key Services
We provide a seamless fully integrated and client branded outsourcing solution including:
- New Business Processing
- Customer Services
- Billing and Collection
- BACS Bureau
- Cash Processing & Bank Reconciliation
- Arrears Management
- Management Reporting
- Lease Accounting
- Application & Systems Support
- Project Management
- Consultancy Services
- Business Continuity & Disaster Recovery
New Finance Company
“We expect significant growth in our marketplace and place a high value on the level of expertise LPMO is able to provide and their ability to offer an efficient, scalable and cost effective back office solution from day one.”
Alexis Prenn at Triple Point
Existing Finance Company
“LPM Outsourcing always respond to tight deadlines. Indeed, FAL has never failed to meet a NM Rothschild deadline due to LPM Outsourcing.”
Declan O'Brien, Five Arrows Leasing
New Start Finance Company case study
Client: A Finance & Leasing Broker
Service delivered: Portfolio management
Gross receivables: £70 million
Business volumes: 3,800 agreements
The client’s requirement:
A finance and leasing broker, wished to increase shareholder value by developing its own book.
It was seeking a market-entry solution that did not involve the high investment in systems and administrative infrastructure usually required to set up, manage and account for a finance portfolio.
LPM Outsourcing’s programme of action:
- In close consultation with our client, we established the necessary workflows and supporting operating procedures and then customised our system to meet the client’s precise requirements.
- The services we deliver cover all administration, customer service, collection and accounting functions in a fully-branded client programme.
- Shareholder value was significantly increased and the business was sold in 2007, with LPM Outsourcing continuing to administer the portfolio for the new owners
- The first agreement was processed for the client in 1998. Today, their portfolio has grown to £70 million.
Existing Finance Company case study
Client: A major US manufacturer of high technology equipment and services
Service delivered: Pan European portfolio management
Gross receivables: £650 million
Business volumes: 3,100 agreements
The client’s requirement:
A major US manufacturer of high technology equipment and services, wanted to develop its own finance arm to support its UK and European sales operations, but without increasing its headcount.
Our client outlined a number of key priorities, including:
- An urgent data transfer of the existing portfolio from its current finance house partner. This needed to be completed within 45 days.
- The ability to process new lease agreements within 60 days of the programme’s start date.
- A high level of sales support administration.
- The implementation of an arrears reduction programme.
- The ability to conform to local European and US GAAP reporting and accounting standards.
LPM Outsourcing’s programme of action:
- We set up the portfolio, carried out the data conversion and reconciliation, and began booking new business within 30 days of the programme’s inception.
- We then implemented an arrears improvement programme which succeeded in halving the arrears exposure within 90 days.
- The programme, running since 2000, now covers in excess of fifteen countries.
- Since we took over the portfolio, it has grown from £38 million to over £650 million
- Regular process and system enhancements take place to meet with the changing global reporting requirements and to adapt to new product offerings.
Portfolio Run Out case study
Client: KPMG
Service delivered: Portfolio work out programme
Gross receivables: £47 million
Business volumes: 4,700 agreements
The client’s requirement:
KPMG was appointed administrative receiver for an insolvent finance company which had a general-purpose portfolio consisting of cars, commercial vehicles, plant and office equipment.
The portfolio was in a highly distressed condition with serious documentation shortfalls, fraud and substantial aged debt levels, bad debt losses and future bad debt exposure.
Our client's objective was to maximise portfolio cash returns for the funders and other creditors.
LPM Outsourcing’s programme of action:
- We were appointed to provide a ‘work out’ service for the portfolio. Our first job was to place a collections task force into the finance company premises.
- We then undertook a portfolio data conversion to our own system and the programme was relocated to LPM Outsourcing’s premises within three months.
- On completion of this intensive four-year work out programme, the funding banks and other creditors received 100% payout - against the original estimate of 60p in the pound.