By Brian Smith, Co-Founder and Managing Partner
In asset-based lending (ABL), collateral is the foundation of every credit decision. A field exam provides lenders with a clear, verified view of that collateral, its composition, performance, and true recoverable value. At LCG, our Commercial ABL team works with financial institutions nationwide to deliver accurate, independent assessments that protect lenders and strengthen credit confidence.
What Does a Field Exam Involve?
A field exam is an on-site or remote review of a borrower’s financial records, focusing on the assets that secure a loan, typically accounts receivable, inventory, and fixed assets. Examiners test the accuracy of reported figures, assess internal controls, and evaluate collateral performance over time.
Why is it Critical in ABL?
A well-conducted field exam helps lenders:
- Verify the borrowing base supporting loan availability
- Detect data inaccuracies, fraud, or operational weaknesses
- Identify trends in customer concentration, dilution, or turnover
- Evaluate the borrower’s overall reporting reliability
Our Approach
Our professionals combine in-depth accounting knowledge with real-world lending experience. We don’t just identify risk, we interpret what it means for collateral quality, loan structure, and monitoring requirements.
Conclusion
Field exams give lenders clarity and control. LCG provides the accuracy and independence needed to protect lending relationships and portfolio performance.
For more information about our collateral field exam services, contact Tiffany Grant at [email protected].