We offer field examinations (aka collateral field examinations or collateral audits) to lenders within the Factored, Commercial & Industrial (C&I) and Asset Based Loan (ABL) marketplaces.
Our examiners are full time employees of R&F. We use our own propriety template that is continually updated with procedures to adapt to the changing landscape, however R&F is also proficient with many other lender templates. R&F is constantly investing in new technology to meet the security standards of top lenders around the world.
Although we are regionally focused, we have the flexibility to perform audits that require travel within the US as well as International.
The scope of the Field Exam is customized to ensure that all Lender specifications and timelines are met. The outcome is to provide Lender's with a thorough objective analysis to assist in making proper decisions and help manage their relationship with the borrower or prospective borrower better.
Types of Field Exams:
We also offer additional enhanced services including:
Our work and staff are guided by established firm principles, policies and procedures that have been built over the last 25 years, which include integrity, honesty, accountability, technical strength, and superior technology. The principles never change, the policies and procedures are continually updated based on lender requests and new technology. We are committed to providing the best overall experience for the Lender and Borrower.
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.
Each exam is unique and personalized to meet the client expectations and goals. Timing depends on availability and assignments can range from single-day factoring exams to multi-week transactions for syndicated bank groups.
Field examinations are a key component in asset-based lending. They identify potential risks for the lenders due to a change in collateral or accounts receivable values or other potential deteriorating situations in a business’s financial position. They also allow lenders to gain insight into a client’s accounts, helping them in their lending decisions. Recurring field examinations can confirm that the asset value of a business does not decrease over the loan period and also be used as a barometer for measuring improvement on previous deficiencies.