Rosenberg & Fecci provides field examinations, due diligence and other specialized financial services to lenders and investors across a broad range of industries. Backed by the highest level of technical support, our individually customized business solutions include:
Field Examinations
A field examination is an on-site detailed analysis and review of a potential or current borrower’s books and records for the lender. The ultimate goal of a field exam is to determine an estimated value of the collateral assets in a liquidation scenario and the potential collection value of the assets compared to the facility exposure of the lender. In most cases the collateral consists of receivables and inventory being used to secure the loan. The results will provide the approximate collateral value (excess or deficit based on the borrower’s A/R and inventory). The field exam also includes analysis in critical areas such as cash, accounts payable, payroll taxes, insurance, cash receipts and disbursements. The results of the Field examination should provide the loan officer with up to date and valuable information necessary to manage his or her secured relationship with the borrower.
Collateral Reports
A written examination scope is agreed upon with the lender. The scope will include testing, trending and analysis of pledged collateral (accounts receivable, inventory and other assets). The exam will include a review of the liabilities or deferred revenue exposures that may potentially be offset against eligible collateral. .
Surveys
New business examinations include an evaluation of the prospect’s systems and controls and their impact on providing accurate potential loan collateral
Recurring Field Examinations
Annual, Semi-annual or quarterly collateral examinations are conducted as required by the lender. The scope of these exams can be modified to fit the lenders’ specific requirements; an example of this would be an exam focusing primarily on deposits and analysis.
Assistance-to-Lender Employed Examiners
R & F has a proven track record of being a useful tool in successfully assisting in-house examiners in any capacity required by the lender.
Pre-Fund Takeovers and Take-downs
These limited scope examinations typically include rolling forward AR collateral to the loan funding date and calculating an updated loan availability schedule (borrowing base). Information is reviewed from the original survey period to the funding date.
Specialized or Limited Engagements
As mentioned R & F is well versed on the evaluation of procedures and controls associated with, Commodity and Technology related collateral reviews, Leased asset reviews and. Financial Institution control review.
Forensic and Workout Engagements
R & F examiners are usually called in when a lender has a sense that the borrower may not be reporting their collateral properly or may have committed some type of impropriety. These exams are generally specialized in nature and can include:
- Full bank statement analysis to determine whether the Company has been diverting cash
- Broader scope of accounts receivable testing, including extensive verifications (confirmations – written or telephone)
- Broader scope in inventory testing, including complete counts and location verifications
Litigation Support
R & F’s senior staff are experienced in providing deposition testimony as expert witnesses for litigation involving collateral reporting.