ARG, an asset finance firm, collaborated with Upscaled to tackle operational inefficiencies and financial instability. Upscaled’s comprehensive strategy included enhancing asset recovery through analytics, introducing AI-driven risk assessment tools, and implementing cost-saving measures like digital collections and off-shoring. The partnership led to a 15% increase in asset sale performance, a 20% improvement in roll rates, and a strategic global market presence, ultimately exceeding ARG’s goals and bolstering their financial health.
ARG, a prominent player in the asset finance sector, sought Upscaled’s expertise to enhance their operational efficiency and financial stability. Their objectives were clear:
Increase asset recovery yields specifically for truck repossessions.
Develop methods for risk-based lending and collections.
Implement cost-effective collections strategies.
Refinance existing debt to improve financial leverage.
Challenges
ARG faced a competitive market with fluctuating asset recovery rates. Their traditional lending and collections methods were not optimised for risk assessment, leading to higher default rates. High operational costs for collections and an over-leveraged debt structure further compounded their challenges.
Solutions
Upscaled approached the problem with a multi-faceted strategy:
Asset Recovery Enhancement:
Deployed advanced analytics to identify patterns in asset recovery, optimising the repossession process.
Introduced a dynamic pricing model for repossessed trucks, maximising resale value.
Risk-Based Lending & Collections:
Developed an automated collections risk tool that leveraged AI to predict default probabilities, enabling targeted interventions.
Cost-Effective Collections:
Implemented a digital communication strategy to reduce the need for physical repossession efforts.
Established an off-shore presence to leverage global talent and reduce operational costs.
Debt Refinancing:
Negotiated with creditors to refinance over $25 million in debt, securing lower interest rates and better terms.
Results
The collaboration between ARG and Upscaled yielded impressive results:
Asset sale performance saw a +15% improvement on a like-for-like basis.
The automated collections risk tool significantly improved roll rates by +20%.
The establishment of an off-shore presence provided ARG with a strategic advantage in global markets.
The successful refinancing of debt enhanced ARG’s financial flexibility and growth potential.
Upscaled’s tailored solutions not only met but exceeded ARG’s expectations, and assisted with transforming the company’s business operations and financial health.