It has focused on an “asset-first” risk
strategy that focuses on intense understanding of asset
profiles.

The rationale behind this strategy is to use
experience of asset characteristics to make lending possible in
situations where a strictly balance-sheet focused risk model might
forbid it. As well as the asset in question, Davenham would examine
other unencumbered equipment owned by the lessee.

It would then offer finance to those other
assets owned by the lessee and, in doing so, spread its risk more
widely.

This has kept the business in good shape,
maintaining steady business volumes of between £2 million (€2.1
million) to £3 million per month.

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