Piraeus Bank in talks with Bain Capital to sell its leasing portfolio loan
Lease portfolio management
Portfolio management of leases or leasing portfolio administration refers to the procedure whereby an organization actively collects and archives every lease detail and documents.With this data, they are able to make better informed decisions in negotiating favorable lease terms, maintain full compliance with accounting requirements and effectively manage ending of lease requirements for any asset they own under lease. For many companies it has become an integral element of their management of accounting, operations and procurement strategies, and is crucial in avoiding excessive spending on an asset over the lease term and other cost savings.
After a lease is approved and signed it is essential that companies have a system to manage and managing all legal obligations pertaining to the lease, like the payment of rent, renewal cost and the terms of the lease at its end and also taking care of any lease changes that are needed.In order for a business to reap the most value out of their leases, and to benefit from the advantages of lease agreements that are competitively negotiated It is crucial to proactively manage the lease process through every stage of the lease’s lifecycle.This is where efficient leasing portfolio management can be found.
There are numerous firms that aren’t aware of the importance of effective lease management which you have to use your car title. They are often ignoring its importance due to not having the proper infrastructure, resources and processes that will maximize their leasing.They manage large lease portfolios using outdated software that are not designed for handling the complexity of large portfolios. They are also stuck with complicated and confusing spreadsheets with a myriad of limitations.This prevents the appropriate level of control required to ensure effective lease management.
The inability to control and maintain the accuracy of a portfolio usually results in undesirable consequences.Documentation can be lost, lost or stored in inconsistent ways, which can lead to undesirable complications later on in the lease that could cost you money, such as difficulties in negotiating the lease’s terms or conditions, not knowing deadlines for lease termination and implications regarding return terms, creating more confusion if there aren’t the appropriate security measures in place.
The solution to avoid such issues can be simple to accomplish through the implementation of efficient lease management processes.There are two choices available to firms when it comes to lease management. They could or manage the task internally or can outsource the process to lease portfolio specialists like Innervision.In the end, it comes down to a variety of important factors, including the size and complexity of your portfolio. Also, consider the efficiency of the existing processes within the company and the difficulties of ensuring complete accounting compliance.
Piraeus Bank, one of the four biggest lenders in Greece.
Piraeus Bank, one of the largest lenders in Greece has been in discussions together with Bain Capital to sell a lease portfolio in order to remove non-performing loans its balance sheet, sources in the know have told Reuters.
Greek banks are making progress in their efforts to write off, sell or refinance billions of euros of bad loans they accumulated over the current financial crisis.
On Monday, the rating agency Moody’s upgraded Greece’s four biggest bank and provided them with a favorable outlook. The agency said the upgrade was mostly due to improvements in the quality of their assets as well as positive prospects of further increasing their recurring profits.
Piraeus Bank and Bain Capital were not immediately available to comment.
The Piraeus Bank’s leasing portfolio called Project Sunshine, has a net book value of around EUR 531 million ($621 million).
Bain Capital is a multi-asset alternative investment company.
In June, Bain Capital Credit, part of the group, purchased its back 1.6 billion euros of commercial loans that were not performing by Greece’s National Bank. National Bank of Greece.
In the year 2018, Piraeus Bank agreed to sell an EUR 1.45 billion collection of non-performing, secured commercial loan for Bain Capital Credit as part of its plan to cut down on bad loans.
(1$ equals EUR 0.8532)
(Reporting from George Georgiopoulos; editing by Mark Potter)