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Purchase Order Financing     |     Asset Based Lending (ABL)     |     Risk Participation     |     Document Preparation (DocPrep)     |     Customer Onboarding (COB)
 
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FinShare's Asset Based Lending (ABL)

Asset Based Lending (ABL) is one method banks use to create credit facilities for many of their business customers. In ABL, a company's assets are used as collateral to generate a facility which can be drawn against for working capital. Almost any asset a customer has can be utilized as collateral for lending purposes. For example: accounts receivable, inventory, fixed assets, real estate, cash or cash equivalents, etc can be tracked and monitored by our application. The two primary assets used are Receivables and Inventory.

Credit committees within banks usually create maximum borrowing limits that cannot be exceeded, regardless of asset valuations or borrowing base. This is monitored by FinShare's Risk Management engine and may be synchronized with the bank’s other limit tracking systems.

Assets tracked, and monitored as part of the collateral valuation process are:

  •   Streamlined or formula based accounts receivable financing
  •   Inventory financing with sub categories (i.e.: raw materials, work in process, finished goods, as well as in-transit inventory)
  •   Fixed assets with sub categories such as plant and fixtures, equipment, real estate, etc
  •   Cash or cash equivalents including sub categories (i.e.: cash, securities, time deposits, Bonds, etc)
 
Information Flows
  •    An online or printed report listing the assets accepted or not accepted by the bank. (Items not accepted could be duplicate invoices, bad credit rating of the buyer, OFAC's list, etc.)
  •    Creates the "borrowing base Certificate"  which serves as the client's agreement for the revolver and/or facility update per asset valuation.  Also creates all other documents a bank needs to set up an ABL customer
  •    Customers can view the borrowing base in real-time
  •    An online or printed report of the bank's valuation of assets
 
  •    Tracks and evaluates all of the customer's assets or liabilities:
  •   Accounts receivable and supporting invoices
  •   Inventory valuation and performance
  •   Equipment and term loans
  •   Real estate, and/or other fixed assets
  •   Cash and cash equivalents
  •   Payments
 
 
Highlights
  •   Automated uploading of borrower's assets
  •   Automated checking of Buyer's and Supplier's credit rating against a database
  •   Online customer view/access of processes and ongoing status which allows for more visibility
  •   Online and real-time reporting and amendments
 
  •   Tracking of all items, including payments at the lowest granular level
  •   Creates and tracks all customer communication
  •   Complete dilution reporting
 

 
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