Portfolio Risk Management and Specialist Audit Services

Wholesale and block discounting funders are reliant on the performance of an underlying portfolio to safeguard their security interests.

Under the terms of a wholesale or block discounting agreement, any shortfall against the agreed security cover must be rebalanced. Typically, this involves the pledging of replacement agreements to the value of any shortfall. Such deficiencies are generally the result of end-customer delinquency or early termination of a lease or loan.

A 30 point measurement of key elements determining portfolio performance and security, targeting:

  • New business origination – sources and process
  • Delinquency characteristics – concentration, reason and frequency
  • Early termination – reasons and trends
  • Risk concentrations – asset, product, location
  • Management update – notable changes of people and structure
  • Systems and Process overview – billing and collection tools employed

A highly experienced audit team, conducting on-site audit attendance for routine and special case analysis

Special independent analysis for mergers & acquisitions.

M&A diligence is a natural extension of VLS’s audit services delivery.

VLS supports more and more M&A Diligence opportunities, as the combination of wholesale funding to independent leasing companies, plus M&A opportunities in the UK asset finance market continue their momentum.

Investors recognise VLS’s diligence expertise when acquiring interests in UK independent leasing and loan providers

Core diligence reporting processes for mergers and acquisitions, with deeper review of critical operational areas, including:

  • Corporate & Commercial analysis
  • Documentation audit
  • Portfolio analysis
  • Validation of Operating Systems & Procedures
  • Credit & Risk Management policy reporting
  • Procedure and practice in Compliance & Regulatory Reporting

Extensive knowledge of leasing management systems, portfolio performance measurement and the regulatory environment in which the leasing and asset finance sector operates, informs an independent report that help our clients to complete important M&A deals

“VLS offered insightful analysis and meaningful commentary to our M&A transaction.” Ian Smith, Chairman 1PM PLC