Lenders often rely on a borrower's accounts receivable portfolio as a primary source of loan repayment. Consequently, lenders need accurate, specific working knowledge of how borrowers administer the credit and collection function since this impacts the liquidity of the accounts receivable, and ultimately its highest net liquidated value.
From the due diligence phase to the collateral review phase and, if necessary, to the receivables liquidation phase, On-Site Associates, LLC provides quality receivables management services to the Lending Community.
Please feel free to inquire about a representative list of our many satisfied clients, by using our inquiry form.
On-Site Associates, LLC offers the following services:
Accounts Receivable Portfolio Evaluation
Lenders often rely on a borrower's accounts receivable portfolio as a primary source of loan repayment. Consequently, lenders need accurate, specific working knowledge of how borrowers administer their credit and collection function, since this process impacts the liquidity of the accounts receivable, and ultimately its highest liquidated value.
To provide you with this knowledge, On-Site Associates, LLC will visit your borrower in order to:
- Analyze the current and historical financial performance and measure the liquidity trend of the receivables portfolio.
- Perform a detailed credit risk analysis of major customer exposures.
- Identify the product and industry factors that may affect the ultimate collectibility of the portfolio.
- Assess the adequacy of customer credit screening, credit risk controls, financial controls, staffing, and systems support in the credit and collection areas.
- Assign a liquidation value to the accounts receivable portfolio under various operating and non-operating scenarios.
- Identify the critical factors to be considered by the lender in making a decision to take control of the receivables liquidation process.
Our portfolio evaluation services are particularly useful when existing loans are scheduled for renewal, classified as non-performing or under-performing, or in a bankruptcy scenario when you are evaluating or monitoring a debtor's Plan of Reorganization. Our report and analysis of your borrower will assist you in managing the entire process, and if it becomes necessary, our expert testimony can assist you in obtaining a Relief from the Automatic Stay.
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Receivables Liquidation and Collection Services
These services are our firm's preeminent area of expertise, and they are responsible for the larger part of our success in the marketplace. Our receivables liquidation and collection services are especially cost-effective. They are administered in two ways:
- One approach involves placing our professionals on site at the borrower's office to take possession and control of the cash receipts and receivables liquidation process. If appropriate, we develop a team comprised of our collection professionals and former key Company employees. Our experienced professionals will quickly and methodically assess the situation they are presented with and design a liquidation approach that will produce the highest possible recovery rate.
- The other approach involves having one of our professionals enter your borrower's office to take possession of the critical documentation and systems data needed to ensure a successful outcome for the receivables liquidation project. We work closely with you to take immediate control of the cash receipts process; this can be done either via a lockbox or by having your borrower's mail forwarded to our offices. At the appropriate time we transport the receivables information to our offices and conduct the customer account notification and liquidation process on your behalf.
We issue detailed status reports on a regular basis to keep you informed of our results. Our professional staff is always available to answer any questions which arise during the course of the project.
These services have proven invaluable to lenders seeking a cost-effective alternative to the forced liquidation of accounts receivable. On-Site Associates, LLC has liquidated millions of dollars in receivables for our clients by using these proven approaches, and our recovery rate has consistently exceeded our clients' expectations.
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