Collateral Review (Audit / Survey)

All Asset Based Lenders will conduct a Collateral Review (Audit / Survey) prior to formalising the facility, and also throughout the life of a client's facility.

At Edward Symmons we have a team of specialists who have been providing this service for the Asset Based Lenders for many years now. Conducting both pre–lend and cycle Collateral Reviews in the UK and across Europe.

The Collateral Review is an interrogation of a company’s accounting records, testing, verifying and validating the information so as to ascertain the key issues that a lender would need to consider when structuring their facility.

A Collateral Review will cover primarily those assets known as Accounts Receivable and Inventory, identifying aspects of each asset that a lender wouldn’t provide funding against, key historical trends culminating in a conclusion as to the suitability of the company’s assets and accounting records for an Asset Based facility.

Within a Collateral Review of the Receivables we would comment upon the quality of the customer base, historical trends in respect of dilution, age of the Receivable and payment history. A full systems review would comment upon the quality of the documentation validating the Receivable, testing the Proof of Delivery and suggesting improvements that should be made to support an Invoice Finance facility.

For a Collateral Review of the Inventory we review the accounting records and systems associated with all elements of the Inventory, Raw Materials, WIP and Finished Goods. Tests are undertaken to confirm the true cost, gross margin and that all important test count identifying if the Inventory is there!

In both Collateral Reviews we will identify the reserves that a lender would need to maintain, trends they would need to track, and that all important Availability calculation.