Asset-based factoring loans are more complex than traditional ABL loans. We have extensive experience performing field exams with factoring agreements. As with all types of field examinations, the objective is to assist lenders in evaluating the integrity of customers’ collateral. To that end, factoring exams entail all procedures as in collateral monitoring exams and additional procures that typically include:

• Reconciling invoices indicated as factored on lender’s records to invoices indicated as factored on company’s records
• Investigating variances between invoice totals
• Confirming existence of invoices through phone confirmations
• Assessing the accuracy of accounts receivable records as prepared by the company