I. INTRODUCTION…………………………………………8
1.1 MISSION STATEMENT
1.2 HOW WE DO BUSINESS
1.3 [YOURCOMPANYNAME]’s STRUCTURE
1.4 PRINCIPLES OFD CONDUCT
1.5 ORGANIZATION CHART
II. NEW BUSINESS……………………………………….14
2.1 THE PROCESS
2.2 PROSPECT PACKAGES
2.3 THE CREDIT COMMITTEE
2.4 PRE-FUNDING
2.5 POST CLOSING
2.6 PROCEDURES FOR THE FUNDING PROCESS
2.7 COORDINATION OF FUNDING
2.8 PARTICIPATIONS
2.9 SECTION II EXHIBITS:
A. Prospect Write-Up (Write-Up)
B. Prospect Summary (PS)
C. Proposal Letter to Client
D. Credit Committee Summary (CCS)
E. Client Info Form
F. Client Monitoring Form
G. Pre-Funding Checklist
H. Credit Approval Summary
I. Post-Closing Checklist
J. Top Ten Account Debtor List
K. Pay-Off Letter (pro-Incoming Factor)
L. Pay-Off Letter (pro-Outgoing Factor)
M. Back-Up Indemnity Letter
N. Client Advance and Reserve Disbursement Authorization Form
III. COLLATERAL ANALYSIS………………………….44
3.1 COLLATERAL
3.2 ACCOUNTS RECEIVABLE
3.3 DETERMINATION OF INELIGIBLES
3.4 DETERMINING ADVANCE RATES
3.5 ADVANCES BASED ON INVENTORY
3.6 ADVANCES BASED ON MACHINERY AND EQUIPMENT
IV. CREDIT ANALYSIS OF CLIENT………………….70
4.1 THE GOALS OF UNDERWRITING
4.2 UNDERWRITING ANALYSIS
4.3 MANAGEMENT RISKS
4.4 INDUSTRY RISKS
4.5 PRODUCTION RISKS
4.6 DEMAND RISKS
4.7 COLLECTION RISKS
4.8 FINANCIAL RISKS
4.9 ACCURACY OF FINANCIAL INFORMATION
4.10 PROFITABILITY
V. FIELD EXAMINATION………………………………85
5.1 GOALS OF THE EXAMINING FUNCTION
5.2 CLIENT FIELD EXAMINATIONS
5.3 FIELD EXAMINATION TIME
5.4 OVERVIEW OF CLIENT EXAM
5.5 SECTION V EXHIBITS:
A. Field Examination Summary
B. Approved List of Field Examiners
C. Field Examination Checklist
VI. DOCUMENTATION ……………………………….105
6.1 RESPONSIBILITIES
6.2 FILES
6.3 DOCUMENTATION PROCESS
6.4 DOCUMENTATION FORMALITIES
6.5 AGREEMENTS
6.6 GUARANTEES
6.7 UCC FINANCING STATEMENTS AND SEARCHES
6.8 OTHER DOCUMENTS
6.9 SECTION VI EXHIBITS
A. Factoring And Security Agreement
B-1. Buy-Out Agreement
B-2. General Release to Factoring and Security Agreement
C. Intercreditor Agreement
D. Lien Subordination Agreement
E. Individual Guaranty
F. Validity Guaranty
G. Corporate Guaranty
H. Notice of Sale & Assignment of Accounts
I. Board of Director’s Resolution
J. Secretary’s Certificate
K-1. Written Consent of the Managers
K-2. Written Consent of the Partners-General
K-3. Written Consent of the Partners-Limited
VII. PORTFOLIO MONITORING…………………..183
7.1 MONITORING OBJECTIVES
7.2 GENERAL COLLATERAL MONITORING GUIDELINES
7.3 MONITORING RESPONSIBILITIES
7.4 BASIC OUTLINE OF THE A/R MONITORING PROGRAM
7.5 SECTION VII EXHIBITS
A. Schedule Of Accounts
B. Client Advance & Reserve Disbursement Authorization Form
C. Account Debtors Credit Limits
D. Account Debtor Excess Concentration Approval
E. Invoice Verification
F. Bank Wire Letter
G. Trend Reports
VIII. PROBLEM TRANSACTIONS…………………214
8.1 OVERVIEW
8.2 EARLY WARNING SIGNS
8.3 EARLY ACTION STRATEGIES
8.4 CLIENT FAILURE
8.5 PROTECTION AND LIQUIDATION OF OTHER COLLATERAL
8.6 INVENTORY, MACHINERY & EQUIPMENT
8.7 POTENTIAL PERSONAL LIABILITY OF CLIENTS, OFFICERS & DIRECTORS
8.8 BANKRUPTCY
8.9 ALTERNATIVES TO BANKRUPTCY
8.10 SECTION VIII EXHIBIT
