Field Exams

We perform field examinations for new and existing loans for various regional and national financial institutions. Our practice also performs field examinations for cash flow-based loans, export/import related loans, financial due diligence, quality of earnings analyses, and forensic accounting investigations. We can provide the quick turnaround required by lenders while providing a thorough and impartial analysis of asset quality. Industry experience includes: manufacturing, distribution, service, contracting, technology, metals, aggregates, minerals, fixed assets, rental assets, lender finance, factoring, healthcare, and lumber.

We understand the issues that concern secured lenders and work with them to develop a program of field examination procedures, which can involve using a lender’s proprietary program or programs we have developed. Some examples of our field examination procedures include:

• Accounts receivable verifications, analyses of sales dilution, concentrations, cross-agings, contra accounts, agings, and identification of ineligible receivables
• Credit and collection procedures review
• Inventory – test counts, cost testing, analyses of mix, turnover, obsolescence, eligibility and gross margins
• Cash – review of account reconciliations, lockbox procedures, proofs of cash
• Review of insurance coverage and loss payees
• Review of trade payable agings, vendor concentrations and loans to officers or employees
• Verification that payroll and industry specific taxes are current and inquiries as to status of state, local and federal returns
• Analysis of financial trends and ratios, and reviews of reconciliations of key accounts
• Reviews of Borrowing Base Certificates prepared by the borrower and comparisons to independent calculations of collateral availability based on field examinations

After completing a field examination, we can provide secured lenders with recommendations regarding advance rates and collateral eligibility and our detailed report summarizing our procedures and filings.

We staff field examinations with experienced professionals. Therefore, in addition to completing our procedures, we can identify business and credit issues that impact the assessment of the borrower’s creditworthiness and the value of collateral.