Lender Diligence

Developed destination reserves as the lender was unaware of shipping terms.

Various collateral classes impacted by commodity pricing.

Read the Details
  • Industry | Steel Processing & Distributor
  • Existing Loan Size | $225MM
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Situation

  • Three inventory collateral classes, including in-transit inventory.
  • Volatility in the commodities market, specifical steel.
  • Understand sophisticated reports and systems utilized to track and value inventory.

Solution

  • Developed 10% FOB destination reserve as lender was unaware of shipping terms during survey.
  • Detailed review of the customer rebate program was performed on both the customer and vendor side due to significant historical activity.