Balancing Speed and Accuracy in Equipment Financing
In today’s fast-paced equipment finance industry, firms are under immense pressure to accelerate deal timelines without compromising due diligence. This long-standing paradox—speed versus thoroughness—has plagued decision-makers for years. However, Avtech Capital, an independent equipment finance company, has demonstrated that with the right tools, this trade-off is no longer necessary.
Avtech’s transformation was made possible through the implementation of Thomson Reuters® CLEAR, a powerful risk intelligence platform that enables both rapid and comprehensive due diligence.
The Post-Approval Trap
Dan Burris, Head of Portfolio, Risk Management, and Fraud at Avtech Capital, described the firm’s previous due diligence process as “cumbersome” and time-consuming. The inefficiencies meant that not every deal could be thoroughly screened prior to approval. This led to post-approval complications, where issues uncovered too late forced uncomfortable conversations with clients.
“It created friction and eroded trust,” Burris explained. The delay in uncovering critical data not only stalled transactions but often resulted in deals falling through, giving competitors the upper hand. Even when due diligence was performed, the tools in use missed key data points—judgments, lawsuits, and affiliations—leaving the company exposed to hidden risks.
Manual searches for negative news and incomplete identity verification added further complexity. For executives overseeing risk and compliance, these gaps posed serious threats to governance and profitability.
Reinventing Due Diligence with CLEAR
To address these challenges, Avtech Capital adopted Thomson Reuters CLEAR, a solution designed to centralize and automate risk intelligence gathering. With CLEAR, the team gained access to deep, authoritative data sources, including legal judgments, business affiliations, and real-time negative news alerts.
One of the platform’s standout features, CLEAR ID Confirm, enabled robust identity verification across multiple databases. Another tool, CLEAR Risk Inform, helped surface hidden risks that may otherwise go unnoticed.
“It gave us more information faster,” said Burris. “We were able to address due diligence items prior to approval, instead of retroactively.”
Crucially, CLEAR enabled Avtech to design a scalable risk-tiering system. This allowed them to apply appropriate levels of scrutiny based on deal type and risk profile—without increasing staffing. “We could set up our own scoring system, and if nothing material showed up, we could move forward without a manual review,” Burris added.
The Results: Speed Without Sacrificing Rigor
The impact of CLEAR on Avtech’s operations was profound:
- 75% reduction in due diligence time per deal
- 100% deal coverage—double the previous scope
- 50% overall time savings despite increased diligence
- Significant drop in deal attrition during funding stages
Burris quantified the time savings: “It took us just 25% of the time compared to our previous process. We cut the effort down to a quarter.”
But more than efficiency, the platform helped avoid costly mistakes. Burris recounted one case where an applicant seemed legitimate, but CLEAR revealed a history of fraudulent activity. “We would have done the deal if we hadn’t seen that data,” he said. “Our policy is clear—we don’t do business with bad actors.”
By eliminating the need to revisit deals after approval, Avtech also shortened timelines and preserved client trust. “We’re not circling back with new conditions,” Burris explained. “That’s been the biggest win.”
Implications for the Industry
Avtech Capital’s success story illustrates a broader shift underway in the equipment finance sector. The firms that will thrive in the coming decade aren’t those that merely approve deals quickly or those that exercise extreme caution. Instead, the leaders will be those who harness technology to do both.
Integrated platforms like CLEAR provide the intelligence needed to make high-velocity, high-confidence decisions. By automating data collection and integrating risk analysis, firms can reduce operational burdens, improve compliance, and cut deal mortality.
Avtech’s case demonstrates that comprehensive due diligence doesn’t have to come at the expense of speed. With the right tools in place, organizations can scale their capabilities, improve customer experiences, and safeguard their portfolios—all without increasing headcount or extending timelines.
To learn more about how Avtech Capital achieved these results, explore the full case study and discover how your firm can replicate their success.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.