Field Examinations
Asset based collateral field examinations are agreed-upon procedures designed to provide the lender with timely evaluations of the quality of the collateral that has been secured within a financing agreement. The periodic evaluation of the collateral consists of monthly trend analysis, dilution calculations, identification of ineligible categories and results of specific testing procedures performed. The examination report will provide valuable tools for decision making with regard to the establishment or adequacy of collateral advance rates. Our report will also provide recommendations to improve the quality and accuracy of the bank reporting arrangement.
Timing that Meets Your Needs
Services can be performed:
- Annually
- Bi-annually
- Quarterly
- Customized to your timing and need requirements
The needs of your customer may change throughout the year due to the seasonality of their industry, significant changes in the mix of the customer or supplier base, and economic conditions impacting the marketplace. The results of the field examination often provide early indicators of such changes, thus enabling the lender to make informed decisions.
Scope
The normal collateral field examination scope includes extensive analysis of accounts receivable and inventory. Limited procedures are also performed on cash, accounts payable, payroll taxes and insurance. The exact scope of the procedures performed will be tailored to your specific needs.
“We utilize Herbein + Company to perform Asset Based Field Examinations for us. The quality of Herbein’s work has been exceptional. Their auditors who perform asset based exams are knowledgeable and professional. We have been very pleased with the quality of Herbein’s service.”
Director, Manager of Field Exams
Wachovia Capital Finance