Not all types of inventory are treated the same when being considered as collateral within a lending agreement. Neha Malhotra follows up a previous article on accounts receivable ineligibles to discuss types of ineligible inventory as well as how such inventory is appraised from a lending perspective.
Many aspects of the asset-based lending process had to be drastically changed due to the working conditions spurred by the COVID-19 pandemic, but no area was as challenged as the work of field examiners. Donald F. Clarke of Asset Based Lending Consultants explains how field exams were conducted during the COVID-19 pandemic and how they might look in a post-pandemic world.
Field exams have changed in the last decade, with more emphasis placed on work papers. Donald J. Flores explains why this is a dangerous trend and outlines where field examiners should focus their time.
Engaging an independent field examination service to evaluate collateral before making an ABL loan can protect a lender from undue exposure. Howard Rein provides guidance to help lenders obtain a cost-effective, timely and accurate field examination.
Rosenberg and Fecci Consulting’s Steven M. Rosenberg spoke with Joe Amorin, a seasoned field examination manager who retired from his post at JPMorgan Chase in 2011, to gain insight into the field exam profession, how it benefits lenders and borrowers, and how it has evolved for the better over the years.
When a field examiner discovers inconsistencies upon her review of a modular home manufacturer applying for an increased line of credit, she ultimately uncovers fraud.
The challenges facing the field examination industry will create opportunities for some and potential failure to others. Opportunities will come for those that can adapt and maintain high standards for quality and communication while growing responsibly. Lender’s Consulting Group’s Paul Epstein and John Dendrinos discuss the changes they’ve seen, what lies ahead and how to stay in pace with the structural shifts to avoid failure along the way.
The losses lenders experience at the hands of dishonest borrowers can be a very large proportion of the total loans outstanding, and can monopolize a significant amount of lender time. The use of field exams and other financial reviews can help to identify problems at an early stage, thereby allowing the lender time to take action to protect its exposure.
Missing deadlines, poor data and information flow, and reworking previously completed borrowing bases and valuations engender costs that fall heavily on service providers, but also impact the resources of a lender. Deals subject to extensive delays form a poor foundation for future cooperation between the lender and the company. The following article offers five point to consider in order to avoid a drain on resources — financial or otherwise.
Field examiners may spend a considerable time scrubbing a borrower’s trade accounts receivable (A/R). Often the resulting ineligibles proposed are met with the following question “Isn’t this all covered by dilution?” Knowing the answer to the question is critical to ensuring that the borrowing base (Bbase) formula adequately protects an asset-based lender. ABF Journal’s coverage on field examinations concludes with the final part of this three-part series.