Our experienced examiners have expertise in handling exams in a wide variety of industries, some of which include government contracting, manufacturing, service industries and health care.
Chesapeake Collateral Consulting’s services provide:
- Field exam for the origination of asset based lending relationships.
- Standard and recurring (quarterly, semi-annual, and monthly) field exams verifying compliance with collateral and loan requirements.
- Specialized services to assist the Bank with a distressed borrower, including onsite supervision of the debtor’s activities.
In addition to the standard field exam, a range of information is gathered which is beneficial to the initial and continuing underwriting processes of the Bank, such as trend analysis, credit and collection procedures, insurance information, and debtor and supplier concentrations. We also address debtor specific information and procedures as required by the Bank. Our analysis of accounts receivable, inventory and accounts payable is designed to uncover negative trends such as receivable deterioration, slow moving or obsolete inventory, held and un-posted cash and any stretched condition in accounts payables.
CCC will perform your field exams in a thorough and timely manner using our state of the art automated audit program efficiently producing a thorough professional product for the Bank. CCC field examiners are also skilled in using a variety of proprietary bank field exam programs. Our goal is to provide you with valuable information in a timely manner allowing you to respond quickly to a potentially adverse situation. The exam report is generally completed and submitted to the Bank within five to seven business days following the field exam; however, a verbal report will be made on the day following fieldwork, reporting pertinent aspects of the exam.
- Compliance Field Exams are generally performed on a quarterly basis, or with less leveraged borrowers on a semi-annual or annual basis. These exams are performed to monitor the borrower’s continued compliance with the loan agreements, collateral margins, and to uncover negative trends that may have developed or could potentially develop.
- Each Compliance Exam follows a set of agreed upon procedures performed on the books and records of the borrower. Specific agreed upon procedures are determined in advance through consultation with the Bank’s Audit Manager or Account Officer, governing the overall scope and depth of the field exam and allowing the Bank to focus on a remedial course of action depending upon the facts obtained.
- Origination Field Exams are performed at the initial underwriting of a potential borrower and are more detailed than a Compliance Field Exam. Often Origination Exams contain information encompassing a full year’s analysis versus the typical 3 to 6 months. In addition, we provide specific recommendations based on the quality of collateral and the overall operations of the company.
- CCC understands that Origination Field Exams are an urgent matter to the Bank, and will work diligently to meet the Bank’s timeframe. The Origination Field Exam is a rigorous and thorough approach to underwriting major credits and encompasses a broad detailed underwriting process. Many of the procedures are also used in Business Investigations for mergers and acquisitions. It is therefore highly suited to large corporate credits as well as asset based lending credits.
- Of particular interest to the Lender will be CCC’s analysis of the Accounting Policies, Systems and Procedures. This analysis determines the Borrower’s ability to provide accurate and timely collateral and financial information to the Bank.