This course introduces the concept of Recovery Cost vs Value Trade-Off within the Tractor & Farm Equipment Credit framework. It focuses on evaluating whether recovery actions—such as repossession, auction, or negotiated settlements—are economically justified based on expected recovery value versus the cost, time, and effort involved.
Learners will explore key assessment dimensions such as execution of structured collection strategies, cost implications of repossession, valuation outcomes in auctions, and effectiveness of settlement approaches, with an emphasis on independent validation and well-documented rationale. The course highlights how inefficient recovery actions can erode value, while well-timed and economically sound decisions can optimize recoveries and minimize losses. It also distinguishes recovery cost vs value trade-off from broader credit management processes, emphasizing its role in decision-making for recovery efficiency rather than end-to-end credit lifecycle management.
By the end of the course, participants will understand how to assess recovery strategies in practice, particularly within Collection Strategy and Recovery Execution. The course also emphasizes the role of the senior credit leader in setting portfolio limits, governing exception criteria, and ensuring strategic alignment across the Tractor & Farm Equipment Credit function, including oversight of recovery economics, documentation standards, exception handling, and escalation protocols aligned with credit committee priorities.