By Brian Smith, Co-Founder and Managing Partner
A field exam shouldn’t be viewed as an audit; it’s an opportunity for borrowers to demonstrate financial discipline and transparency. Proper preparation reduces stress, shortens timelines, and builds lender confidence.
What Should Borrowers Expect?
Field examiners review collateral reports, trial balances, and supporting documentation such as invoices, inventory listings, and cash receipts. They’ll test data accuracy and evaluate how collateral is tracked and controlled internally.
How to Prepare Effectively
- Organize documentation – ensure AR and inventory reports are current and tie to the GL.
- Address discrepancies early – reconcile differences between internal and reported data.
- Review policies – be ready to explain credit terms, write-off procedures, and reserves.
- Maintain open communication – transparency creates smoother exams and stronger lender relationships.
The Borrower’s Advantage
Preparation demonstrates credibility. Borrowers who embrace the process often experience fewer audit exceptions and greater lender flexibility.
Conclusion
A well-prepared field exam benefits both parties. LCG assists borrowers in streamlining documentation and strengthening financial reporting before exams occur.
For pre-exam readiness consulting, contact Tiffany Grant at [email protected].