Examinations can expanded or limited based on the requirements of the lending institution, as well as customized to address the Borrower’s specific industry. The standard examination consists of a review of accounts receivable, inventory, accounts payable, bank statements, insurance, financial statements, fixed assets, taxes and any other documentation as it relates to the assigned collateral of the Borrower.

Accounts Receivable

Historical Spreads

Credit & Collection Policies

Ineligible determination

Concentration Analysis

Dilution & Turnover Analysis

Bad-Debt Review

Past Due Accounts Review

Shipping Test

Credit Memo Test

Verifications

Reconciliation

Inventory

Turnover

Ineligible determination

Historical Analysis

Book-to-Physical

Cost Testing

Backlog

Quantity Testing

Gross Profit Test

Location and Composition Analysis

Reconciliation

Fixed Assets

Test Count

Accounts Payable

Historical Spreads

Concentration Analysis

Turnover

Vendor Invoice Test

Reconciliation

Bank Statements

Cash and loan reconciliation

Held/Outstanding Checks

Proof of Cash

Cash Receipt

Disbursement Analysis

Financial Statements

Reconciliation

Year-End and Interim Comparison

Notes Payable

Taxes

Payroll Taxes

Income Taxes

Sales Taxes

Real Estate Taxes