Situation

A non-U.S. bank with interest in expanding its vendor finance programs globally approached The Alta Group for a benchmarking study on origination processes and platforms to partner with manufacturers in the United States and Europe. One of the bank directors, who already knew The Alta Group’s CEO, expressed the bank’s interest in expanding its vendor finance business to serve providers of medical, office, and technology equipment in both the United States and additional growth areas of Europe. The bank wanted to initiate vendor financing in both markets with efficient systems and processes that would enable it to compete with other global vendor finance companies in the same regions.

Solution

Experts within The Alta Group’s Financial Institutions Practice area and its Vendor and Captive Practice area collaborated within Alta to provide a data-rich report on U.S. practices and provided assistance in vetting system providers to determine which vendor finance systems would deploy rapidly in America. This work was followed on in Europe with similar analysis and advice from experts representing Alta’s EMEA/Invigors region.

Success

The Alta Group’s recommendations considered business nuances in each market and, while this bank had effective vendor financing operations already established in its own country, the bank’s vendor finance group gained knowledge to create a U.S. system that fully considered state taxes, business processes, and other particular requirements pertaining to specific equipment categories. Similar considerations were made to advise this client in its European approach.

In the U.S., the analysis was provided in a month’s time and was well received by the client for its quality, quantity, and timeliness. The advanced research and guidance Alta provided its client will save in launch costs and make it effective sooner than would have been possible without the practical knowledge and direction The Alta Group collectively provided.

The Alta Group’s Vendor and Captive Finance Practice and the group’s consultants with financial institution experience collaborated on this project.