Gray, Gray & Gray conducts Field Examinations on behalf of banks, credit unions, private equity firms, and other non-bank asset-based lenders. Our deliverable is an independent assessment of the collateral they are lending against. A well-executed Field Examination provides valuable insights into the borrower’s financial condition along with recommendations to the lender.
Our Field Examination process is designed to objectively appraise the value of a borrower’s working assets. This investigation can help a lender to determine whether or not the borrower’s accounts receivable, inventory, and other assets can be converted to cash to provide collateral support for an asset-based loan or line of credit. A thorough field examination also identifies risks and patterns of credit conditions.
Field Examinations are, in most cases, conducted on-site at the location of the borrower or the borrower’s accounting firm. We can tailor a Field Examination to your specific needs. Typically our assessment includes:
- Verification of assets held as collateral
- Tracking trends in asset composition
- Examination of risks in the borrower’s asset/collateral pool
- Examination of internal controls
- Direct review of the borrower’s financial situation and financial management practices
- Monitoring of the collateral supporting the loan or credit line
What Type of Borrower Might Require a Field Examination?
- New borrowers who have no history with you
- Borrowers whose financial condition is weakening
- Borrowers who have experienced delays in loan repayments
- Borrowers who request an increase in or modification of a loan relationship
- Borrowers whose management is in transition, or whose ability is in question
- Borrowers with questionable financial statements or problematic financial reporting histories
- Borrowers with unusual corporate or organizational structures
Gray, Gray & Gray is a member of the Public Company Accounting Oversight Board (PCAOB).