Multiple Collateral Types
Collaterals lie at the core of the Commercial Lending
Management System, in which different collateral types can be blended in any
combination to support a loan balance. Currently, thirteen asset classes are
supported that can be added to your system over time as you diversify your
portfolio and as the market evolves.
Each collateral typeis valued and monitored in a discreet
process designed for that particular asset class, allowing for closer scrutiny,
more accurate valuation, and tighter control.
Available asset classes include:
Bulk A/R – traditional
borrowing base that manages the collateral valuation method in bulk by tracking
ineligibles and applying an advance rate to determine the lending threshold.
The user defines the ineligible categories and the frequency of certificate
Detail A/R -
asset class most closely associated with factoring thatmanages the vast amount
of detail associated with processing clients' invoices (accounts receivable).
Extensive fee, interest floor, and ceiling options support the most complicated
of asset purchase deals.
A/R Aging – manages
accounts receivable collateral by creating and posting summary aging and
applying discount and advance rates at the bucket age level to establish
availability. Setting options include limits and rates for each aging bucket
and an aging ineligible calculation for each posting.
Multi-Class – a multi-dimensional
A/R that allows for specialized treatment of different asset classifications.
It is useful for industries where different asset classes have different
liquidation values based on historical collection activities.
– most commonly used in healthcare lending, this asset class establishes user
defined categories and assigns historic cash discount rates to convert the
reported value to net collectable value. The system generates aged ineligibles,
summarizes the adjusted category values, and calculates collateral
Inventory Bulk – allows
users to update the inventory balances into the updated values by posting new
purchases, new returns and adjustments, and reductions for sold inventory.
– provides an alternative method for valuing single inventory classes used in
borrowing bases. Established using a variety of control techniques and tracked
by user-defined categories, along with individual category settings for advance
rates and limits. Includes the ability to convert cost basis value to a
secondary valuation basis that more closely represents the expected market- or
Equipment – manages
equipment as additional collateral used as support for a line of credit or term
loan. Users can itemize by individual piece or category. The availability is
based on the reported value discounted by the established advance rate. The
availability can be reserved further by selecting a user defined schedule that
automatically depreciates the collateral value over the useful life of the
Real Estate – incorporates
real estate asset values as calculated loan security. The availability
calculates based on the reported value discounted by the advance rate. Additional
information for this type of borrowing base includes cost and appraised values,
description and location, and relevant dates.
Purchase Orders –
uses purchase orders as additional collateral to support loans. Availability
calculates based on reported value discounted by the advance rate. Additional
information captured includes order number, supplier, purchase terms, and
– used for tracking details of a generic asset class that is used as a
borrowing base by uploading details on assets/loans in a portfolio and
automatically calculating and posting the current value and current
Securities – manages
Over-the-Counter traded securities as additional collateral to support a loan.
The availability calculates based on the current (real-time) trading value per
share and is discounted by the advance rate.
Generic – handles
assets that don’t fit the other available categories. User defined advance
rates and general controls are applied against the asset to calculate