In May, 60-plus-day delinquencies in equipment loan and lease ABS surged by 34 basis points, according to KBRA’s Equipment Loan & Lease Index. That marks a 66 basis point increase year-over-year, and a signal that while portfolios may still perform on the surface, stress is building, particularly across the transportation and logistics sectors.
This spike doesn’t just impact lenders. It puts pressure on servicers, backup providers, and remarketing partners to act quickly and effectively. If your current servicing strategy wasn’t built for volatility, now is the time to rethink.
🚧 Trouble in Equipment Finance Isn’t Just a Statistic, It’s a Servicing Challenge
With giants like Toro and Deere deploying capital strategically during a slowdown, and others like Volvo CE investing to localize production, the market is undergoing significant realignment. But not every player is as well-positioned. For lenders and ABS investors managing equipment portfolios, every basis point of delinquency could translate into millions at risk.
That’s where Servicing Solutions comes in.
🔧 Primary and Outsourced Servicing: Purpose-Built for Performance
Whether branded under your name or managed as a white-labeled solution, our primary and outsourced servicing teams are experts at managing risk, borrower relationships, and recoveries, before issues escalate. From onboarding to billing to collections, we keep your portfolio moving efficiently.
🛡️ Backup Servicing That’s Ready When You Need It
Backup servicing isn’t just a regulatory box to check. In a distressed scenario, your backup servicer becomes the bridge between your capital and your collateral. We’re ABS- and warehouse-compliant, with a tested transition model and a proven record of stepping in—seamlessly and fast.
🚗 Repossession & Remarketing: From Skip to Sale
With equipment repossession volumes on the rise, time is money. Our asset recovery team is equipped with top-tier skiptracing, field agent coordination, and resale solutions. Whether it’s a semi-truck, construction crane, or commercial mower—we get it, and we get it done.
📊 Why It Matters Now
The news makes it clear: growth and consolidation are happening at the top (North Mill + Oaktree, Toyota + Daimler), while stress is rising across the rest of the market. That gap is where operational excellence becomes a competitive advantage.
- Outsourced & Embedded Servicing
- ABS-Ready Backup Servicing
- Full-Service Repossession & Remarketing
- Performance-Driven, Partner-Focused
If your servicing partner can’t scale with your needs, or step up when market dynamics shift. it’s time for one that can.
Reach out to us at sales@servicingsolutions.com