Approximately two years before Cadre became involved, this leading industry-specific equipment leasing company started a service aimed at new venture capital-backed companies. They also provided project finance.
As this program grew, it became evident that new innovative credit policies were needed, a more rigorous due diligence program had to be put in place, and a sales program could be selectively expanded. Due to the increased costs of operating this unit, more revenue was needed on a per transaction basis since simply increasing the number of transactions would not deliver the desired result.
Cadre first worked closely with the firm’s CEO, CFO and program director to develop and implement a credit approval process. A checklist of key items was identified so that the sales force could focus on finding opportunities that met basic needs of the credit committee. Cadre developed and helped to manage a process whereby sales people clearly understood credit needs and changing portfolio needs. When prospective opportunities were identified, Cadre worked carefully with the program director to define the due diligence program so qualified opportunities could be referred to the credit approval committee. Cadre also worked closely with the credit committee to focus on relevant issues with each leasing candidate, and how these needs served portfolio needs, which were important in identifying appropriate financing. Credit and due diligence professionals were separated from sales people during the research process.
Volume increased in a controlled and methodical manner. Sales professionals were able to focus their efforts on opportunities that fit pre-defined needs. The due diligence process was upgraded and loss rates were cut. This entrepreneurial and deal-oriented culture characterized the sales organization. Discipline and structure characterized the due diligence staff and credit committee.