LCG performs comprehensive independent collateral field examinations on prospective borrowers or targeted investments in many different industries. Our examiners assess the prospect’s collateral, analyze trends, review systems and operations, review financial reporting, as well as several other targeted areas that assist our clients in making sound credit or investment decisions. Our goal is to provide our clients with a report that is tailored to their needs and relevant to each individual deal.
LCG can accommodate our clients with quarterly, semi-annual, or annual collateral field examinations. Often, Account Executives are too busy to schedule recurring collateral field exams. We believe that burden from our clients by preparing a detailed schedule of exams that is approved by all parties involved. Once on site, our examiners will perform the necessary testing to ensure the client is fully aware of their customer’s collateral position and financial well-being. The result is a thorough collateral field examination report that is provided in a timely manner.
Risk Assessments consist of an on-site review of a borrower’s overall credit risk. Rather than performing the time-consuming tests and reconciliations typically associated with a collateral audit, these reviews focus on financial performance and trends, collateral trends, operations, management, policies and procedures, and any other material pre-funding deal points. Risk assessments are typically less costly and time consuming and are shorter and less cumbersome than full Collateral Audit Reports.
LCG personnel will verify the existence and quality of a lender’s collateral. Verification services include telephone verification of accounts receivable, inventory floor checking, and site inspections of real estate, machinery and equipment, and other property.
For many lenders, account executives and investment managers simply do not have the time or resources to review a borrower’s performance and track record. So, if a site visit is not practical or warranted, LCG can perform a thorough desktop review of the borrower’s performance and any changes in its collateral. This review can also include the spreading and analysis of financial statements, compliance with loan covenants, and trend analysis of key performance metrics.