Avanza Capital: Steering Through Tariff Turbulence with Unrivaled Risk Management Strategies

NEW YORK CITY, NY / ACCESS Newswire / March 18, 2025 /As global markets face rising uncertainty due to escalating tariffs, Avanza Capital Holdings remains steadfast in its commitment to protecting lending partners capital through innovative risk management strategies and sophisticated underwriting processes. With heightened market volatility and mounting concerns over economic slowdown, Avanza 's proactive approach is designed to mitigate potential risks while maintaining strong deal flow and maximizing returns.

Tariffs are on the Rise: An Avanza Capital New Due Diligence Imperative

Recent tariff hikes have reshaped the private credit landscape, compelling Avanza to adapt swiftly. While some alternative platforms retreat from tariff-sensitive sectors, Avanza Capital has leaned into this challenge, strengthening its risk assessment protocols and enhancing communication with its lending partners.

"The impact of tariffs is very high on our due diligence checklist right now," said Frank Scarso, CEO of Avanza Capital Holdings. "In an environment where economic softness and geopolitical tensions are mounting, we 've adopted a more defensive posture - focusing on non-cyclical businesses and enhancing our underwriting standards to ensure our capital allocations remain resilient."

Scarso emphasized that tariffs represent a long-term economic shift rather than a temporary disruption. "Tariffs are easy to impose but historically hard to reverse," he added. "We recognize this risk and continuously integrate best - in - class robust strategies to ensure our portfolio is positioned to weather these economic headwinds."

Risk Mitigation Tools: Innovation in Underwriting - Just The Tip Of Avanza 's Iceberg​​​​​​​​​​​​​​​​

At Avanza Capital Holdings, the applications highlighted represent just a fraction of the comprehensive suite of resources we employ to safeguard capital allocations and mitigate risk. By integrating multiple layers of data intelligence, analytics, and verification tools, we ensure our due diligence process remains rigorous, adaptive, and aligned with the complexities of today 's economic landscape. Our arsenal is further strengthened by our strategic deployment of elite outside legal counsel Avanza Capital Holdings Asserts Legal Supremacy in Private Credit with Elite Counsel and a curated consortium of industry-specific experts who provide unparalleled domain intelligence across every vertical we operate in-creating a formidable competitive moat that few in the space we specialize in can replicate.​​​​​​​​​​​​​​​​

Avanza Capital 's underwriting process leverages advanced technology and data-driven tools that provide deeper insights into merchant stability, financial health, and overall risk exposure. As part of its comprehensive strategy, Avanza employs key technology:

• TLOxp, powered by TransUnion, to conduct enhanced due diligence, uncover hidden risks, and identify potential fraud. This tool leverages advanced data fusion capabilities to provide critical insights on business risk, skip tracing, and identity authentication - all essential in mitigating risks tied to tariff-sensitive sectors.

• EXB Financial AI, an AI-driven bank statement processing tool, enables Avanza to swiftly assess cash flow trends, flag irregularities, and identify early warning signs in merchant performance.

• DataMerch, a powerful dispute resolution platform, enhances Avanza 's ability to track and evaluate merchant creditworthiness, ensuring disputes are resolved efficiently and records are updated with precision.

• Thomson Reuters CoCounsel, a cutting-edge GenAI platform, allows Avanza 's legal and underwriting teams to streamline complex financial analysis, ensuring faster decision-making without compromising accuracy.

These tools are integral to Avanza 's ability to navigate economic turbulence while preserving capital and safeguarding returns.

Navigating Regulatory Transformation: Avanza 's Strategic Advantage.

Strategic Communication: A Key to Stability

Anthony DeBenedictis, Managing Partner at Avanza Capital Holdings, emphasizes that proactive communication with lending partners is essential in today 's volatile climate.

"In today 's rapidly evolving financial landscape, maintaining transparent and strategic dialogue with our lending partners isn 't just important - it 's critical," said DeBenedictis. "By effectively communicating how tools like TLOxp, EXB Financial AI, and DataMerch are integrated into our risk management framework, we ensure our partners understand how we 're actively mitigating threats to capital. These solutions enable us to detect vulnerabilities, identify distressed merchants early, and implement protective measures before risks escalate."

DeBenedictis further highlighted the importance of foresight in capital preservation. "Wall Street rewards platforms like Avanza Capital that combine precision with innovation," he added. "Our ability as a private credit platform to assess risk in real-time - and openly share those insights with our partners - ensures we remain agile, disciplined, and well-positioned to thrive in challenging economic conditions."

A Track Record of Resilience

Avanza Capital 's proactive risk management strategy has proven successful through past economic disruptions, including the COVID-19 pandemic Beyond Adversity: How Avanza Capital Holdings Redefines .... By leveraging data-driven insights and maintaining disciplined underwriting practices, the firm successfully navigated market volatility while continuing to deliver stable returns.

"Resilience isn 't about reacting to problems - it 's about anticipating them," said Scarso. "Our ability to stay ahead of risks through sophisticated underwriting and strong partner communication is what continues to separate Avanza from the pack."

Preserving Growth in Uncertain Times

While some private credit platforms hesitate amid rising tariffs and economic concerns, Avanza Capital remains committed to partnering with small businesses by strategically purchasing receivables and ensuring its portfolio remains secure. By combining advanced data solutions with rigorous underwriting practices, Avanza continues to deliver superior outcomes for its lending partners.

"In uncertain times, precision and adaptability are key," said DeBenedictis. "Avanza 's ability to harness innovative tools, maintain open communication, and strategically manage risk ensures we are always prepared - no matter how turbulent the market may become."

Media Contact

Anthony DeBenedictis
Managing Partner/Chief Strategic Officer
E: anthony@avanza.nyc
P: 914-536-7565

Disclosure

This article is for informational purposes only and should not be considered an offer to sell or a solicitation of an offer to buy any securities or capital allocation products. Any capital allocation decisions should be made based on individual financial objectives, risk tolerance, and consultation with professional advisors. Avanza Capital Holdings does not provide tax, legal, or capital allocation advice. Past performance is not indicative of future results. All capital allocation strategies involve risk, including the potential loss of principal.

SOURCE:Avanza Capital Holdings

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