Manufacturer Captives

If you are a manufacturer about to launch your own captive finance operation, you’ll know that investing in new computer systems, IT support staff, and back office administrative and accounting staff is expensive, resource intensive and very time consuming.

By outsourcing the management of your finance portfolio to LPM Outsourcing, you won’t have the expense of these upfront investments. What you will have, however, is access to a multidisciplined administrative and accounting resource, from day one.

With 20 years’ experience in managing finance and leasing programmes for other captive finance companies, LPM Outsourcing is a tried and tested outsourcing partner who provides a low-risk, low-cost entry to market.

In fact, we will guarantee you a service level that is second to no other outsourcing provider.

How we can help you

You can outsource any, or all, of the following activities to us:

  • new agreement processing
  • invoicing and cash processing
  • credit control and arrears management
  • direct debit collections
  • customer and equipment vendor/supplier payment management services
  • portfolio and management reporting
  • accounting and VAT processing

LPM Outsourcing is like a division of Cisco, the people there understand the Cisco culture, and indeed they are Cisco vendors, almost part of the Cisco family

Kieran O’Brien,
Cisco Capital

Speed to market Your back office will be up and running within six to eight weeks.
No set up costs All systems and infrastructure will be provided by us – and in place from day one.
No complex procedures to introduce All the necessary processes and procedures will be set up for you, carefully tailored to meet your exact needs.
Lower running costs As we are geared up to achieve economies of scale, the cost of running your programme will be substantially lower than if you did it in-house.
Low start up costs Costs are tailored to business volumes, process and set up complexity. So, if your programme starts small, your running costs will be correspondingly small.
No head count or hiring costs We will provide all the experienced staff you need.
No learning curve As you will have LPM Outsourcing’s expert team working on your behalf, there’s no need to train your own people.
Seamless, branded programme in your name We will answer the phone in your name and all invoices and correspondence will be on your headed paper. Your customers won’t even know LPM Outsourcing exists.
Excellent performance Our emphasis on performance delivery and our commitment to the highest operating standard will ensure your outsourced programme runs smoothly and efficiently at all times.
Improved cashflow We will manage your customers’ payments, helping to ensure prompt payments are made.
Reduced risk We have robust, tried and tested disaster recovery procedures in place to ensure business continuity.
Client:
CISCO Capital
Service delivered:
Pan European portfolio management
Gross receivables:
In excess of £600 million
Business volumes:
2,000 agreements

The client’s requirement:

CISCO, a major US manufacturer of high technology equipment and services, wanted to develop its own finance arm to support its UK and European sales operations, but without increasing its headcount.

Our client outlined a number of key priorities, including:

  • An urgent data transfer of the existing portfolio from its current finance house partner. This needed to be completed within 45 days.
  • The ability to process new lease agreements within 60 days of the programme’s start date.
  • A high level of sales support administration.
  • The implementation of an arrears reduction programme.
  • The ability to conform to local European and US GAAP reporting and accounting standards.

LPM Outsourcing’s programme of action:

  • We set up the portfolio, carried out the data conversion and reconciliation, and began booking new business within 30 days of the programme’s inception.
  • We then implemented an arrears improvement programme which succeeded in halving the arrears exposure within 90 days.
  • The programme, running since 2000, covers nine countries, with plans in place to extend the programme to additional countries.
  • Since we took over the portfolio, it has grown from £38 million to over £600 million.
  • Regular process and system enhancements take place to meet with the changing global reporting requirements and to adapt to new product offerings.