Establishing credit guidelines for a new captive


A multi-national technology company required support to create credit guidelines for a newly established captive.


The Alta Group offered expert support to create a reference guide and roadmap to develop explicit credit policies and procedures. Alta delivered a high-level equipment industry leasing overview and training around typical credit evaluation criteria, credit scoring, financial statement spreading, ratio analysis, mitigation techniques, and credit tools. We also recommended outsourcers who can support critical processes. The support provided also included accounting guidance on FASB Current Expected Credit Loss (CECL) and high-level industry impairment options and implementation guidelines. Alta created a template to manage the longer-term implementation of extensive and explicit credit guidelines.