Whether you manage a small number of working-capital loans or whether they represent the bulk of your portfolio, managing secured working-capital facilities can be a daunting proposition. The robust monitoring processes and data flows necessary to regularly monitor and audit loan collateral on a timely basis are still quite commonly manual. The complex nature of the monitoring requirements greatly impedes operational efficiency and the ability to grow.
Covarity is the only solution on the market today that can effectively support the management of a working-capital lending portfolio (also known as ‘ABL lite’ or hybrid lending) with automatic collection, tracking, collateral analysis, and automated borrowing base calculations.
In particular, Covarity enables working capital lenders to:
- Automate borrowing base calculations – calculate fully-aged class totals, lending value, and ineligibles based on aged listings of receivables, payables, and inventory; or process borrowing base certificates that you can configure. Define borrowing base formulas to automate contra calculations, rules for concentration, credits, cross-aging, and more.
- Track borrowers with multiple reporting schedules – define schedules to automatically diarize loan reviews. Customize communications to remind clients and internal resources of upcoming submissions, or to advise clients when they are late reporting.
- Enable your clients to work with you online – differentiate your client service capability with an online and interactive Client Dashboard (with your brand identity) that enables clients to upload collateral documents securely. Covarity automatically processes receivables, payables, and inventory directly from accounting package export files.
- Generate insightful analysis and compliance reports – run portfolio reports for exceptions, late reporting, and upcoming submissions. Borrower reports depict in-depth collateral trends.
Working capital lenders can also take advantage of the Covarity Ratio Analysis Module, to monitor and analyze financial ratios, covenants, and early warnings signals.