Category: Lending

In recent years, the asset-based lending market has grown significantly. It is projected to grow at a compound annual growth rate (CAGR) of 12.8%, from $697.75 billion in 2023 to $787.28 billion in 2024. This is good news for asset-based lenders, but it also requires a proactive approach by lenders to avoid facing losses. This guide will present the five best practices for asset-based lenders to consider in 2024. So, let’s head right to it!

1. Diversify Asset Types

In 2024, it is recommended that lenders diversify their asset types instead of focusing on a single asset type. Market conditions can change, altering asset prices. So, if lenders have diversified assets, they can ensure a stable portfolio.

2. Integrate Technological Advancements

Technological advancements are booming over the past few years. This means asset-based lenders should also integrate advanced technologies to improve asset tracking, risk assessment, and other business aspects.

3. Regular Assessment

Asset-based lenders should regularly assess the condition of the asset and the performance of the borrower. This will help pinpoint issues early on and ensure that the right measures are taken in a timely manner. 

4. Continuous Communication with Clients

To avoid skip tracing or borrower default, it is important to maintain continuous communication with clients. Regular communication will lead to both better relationships with clients and a quicker method to resolve potential issues before it’s too late.

5. Collaboration with Recovery Specialists

Asset-based lenders frequently deal with non-performing accounts, borrower default cases, skip tracing, or even asset recovery. These situations are frustrating and time-consuming and require specialized skills and resources. The best approach is to collaborate with a recovery specialist firm like ACS to tackle these situations.

ACS (Asset Compliant Solutions) is a specialized asset recovery firm that serves as the right hand for asset-based lenders. It offers comprehensive support to lenders involved with portfolio optimization, skip tracing, and asset recovery.

ACS is fully compliant and licensed in 50 states, holds 25+ years of market experience, and possesses 2,000 field agents across the U.S. The key services of ACS include:

1. Collections: It can optimize collection processes and handle early to late-stage collections, focusing on maximizing recovery rates.
2. Skip Tracing: It employs sophisticated techniques to locate defaulting or unresponsive borrowers. The team communicates and negotiates with the borrower to resolve outstanding debts effectively.
3. Asset Recovery: It can help streamline the asset recovery process. Its years of experience and nationwide field agents lead to a high recovery success rate and seamless asset liquidating experience.

In short, ACS is what asset-based lenders need to optimize portfolio performance. Therefore, it is recommended that lenders collaborate with ACS and let professionals handle account irregularities. 

Conclusion

As more businesses are looking to improve their cash flow outside traditional loan channels, asset-based lending is one of their top options. However, the market’s growth also brings scammers and other threats to lenders. 

That’s why asset-based lenders need to focus on both growth and proactive safety measures. One ideal way is to collaborate with ACS. ACS’s exceptional services in optimizing portfolio performance, skip tracing, and asset recovery are what lenders need to secure their investments to help ensure sustainable growth.

Asset Compliant Solutions (ACS) is a trusted partner for lending companies and lease finance firms, providing innovative solutions to improve portfolio performance and minimize the risk of losing accounts. With over 25 years of experience in the industry, ACS has established itself as one of the top firms in collections and recovery.

One of the key factors that sets ACS apart is its unique company culture. ACS promotes a winning attitude and uses its expertise, experience, and ingenuity to overcome even the most complex challenges. This culture ensures that ACS strives to deliver results that improve portfolio performance for its clients.

ACS also prides itself on its team of dedicated specialists, all of whom have a minimum of ten years of experience in the field. This ensures that every account is handled by professionals who know how to navigate various situations and increase the chances of positive outcomes.

Furthermore, ACS is constantly evolving and innovating to stay ahead of the game. The company understands that portfolio optimization, recovery, and collections are interconnected areas that constantly evolve, and it strives to keep up with these developments. By continuously learning and exploring new ideas, ACS is able to develop better and more efficient approaches to address the challenges faced by its clients.

ACS offers a range of services to help asset-based lending companies and lease finance firms improve their portfolio performance. One of these services is the Collect to Cure program, which targets at-risk accounts and aims to preserve the outstanding account and straighten its course. By analyzing the account and determining the best possible areas to resolve, ACS minimizes the risk of losing accounts and improves portfolio quality.

Another service offered by ACS is the Route to Recovery program, which focuses on ethically and quickly recovering assets. ACS initiates this program when recovery is the only option, and fully-insured field agents track, secure, and deliver the assets to auction. This ensures that lending companies can recover their assets efficiently and minimize financial losses.

Overall, ACS is a trusted partner for asset-based lending companies and lease finance firms, providing innovative solutions to improve portfolio performance and minimize the risk of losing accounts. With its unique company culture, dedicated specialists, and continuous learning approach, ACS is able to deliver superior results and help its clients navigate through the complexities of collections and recovery.