eRevWorks^SM: Asset-Based Lending

If you've thought about the competitive edge of offering an Asset-Based Lending solution, but don't feel you can stretch beyond your current workload — and don't have the experience, knowledge, manpower, or system to monitor it even if you could, then...

eRevWorks provides complete outsource processing for banks and other financial institutions who would like to offer their clients an Asset-Based Lending product supported by the bank client’s accounts receivable. Many financial institutions do not have the time or manpower to administer these lines in a safe and timely fashion. eRevWorks makes the management of these programs seamless due to the quality and versatility of the eRevenue® web-based software platform and the experience and expertise of the eRevWorks back-office personnel. Complete visibility into a fluctuating, real-time borrowing base helps give total transparency to the financial institution. Real-time reporting makes it easy for the financial institution to manage the borrowing base while outsourcing all of the process workload to the eRevWorks Processing Center.

Love the idea of adding an Asset-Based Lending product without the workload but can't stand the thought of giving up management control of the portfolio?

You select the way you want the borrowing base processed including which safety/business rules you would like incorporated. The program is completely customized to the bank's credit culture. The eRevWorks experienced Processing Center staff does the work inside the parameters of that credit culture.

In other words...you custom design the controls to fit your credit culture, you create the controls, and you set the controls. eRevWorks processes according to your pre-set controls.

Our financial partners can choose and customize any of the following safety controls, and eRevWorks will then process according to the pre-selected safety controls as defined by the bank.

• Customer Credit
  The eRevenue® web-based software platform provides comprehensive credit analysis of the company paying the invoice, referred to as the bank client's customer or account debtor. The bank will then decide what credit rating will be selected to exclude invoices from the borrowing base. eRevWorks' Processing Center will exclude all such invoices from the borrowing base.
  
  
• Type of Administration
  The eRevenue® web-based software platform offers the bank two types of administration to choose from:
  1. Invoice-Specific: This would require the bank clients to upload their invoices and payments via their accounting package.
  2. Aging Upload (invoice-specific): Bank clients upload their invoice agings on a predetermined basis. This can be done daily to provide real-time accounts receivable monitoring. No more being in the dark for 30 days while waiting for the next month's aging.
  3. Custom: For clients that do not have the technical savvy or capability; specialized solutions are developed on a client-by-client basis.
  
  
• Redirection of Payment
  At the bank's selection, eRevWorks will either:
  (a) professionally contact each of the bank client's customers' A/P departments to notify them of the relationship between the bank and the bank client using a client-approved notification letter and to redirect payment to the bank's authorized lockbox, or
  (b) notify each of the bank client's customers' A/P departments regarding the bank client’s change of address for payment remittance.
  
  
• Validation
  Validation refers to establishing reasonable assurance that the invoice is valid. eRevWorks will validate each invoice in the borrowing base according to the validation parameters pre-selected by the bank/funding institution. Validation can be done on an individual invoice-basis or on a sampling-basis, and there are many different types of validation. Customization of the validation controls will be configured when each client is admitted to the program.
  
  
• Verification
  Verification relates to verifying the accuracy of the information on the invoice itself. eRevWorks' experienced staff will conduct verification checks on invoices which support the borrowing base according to the verification parameters established by the bank.
  
  
• Drop from Borrowing Base:
  Safety rules can be set to exclude invoices that have reached x number of days from the borrowing base as well as any other rule regarding ineligibility.
  
  
• Customer Concentration:
  The bank can set up an overall customer concentration percentage that applies across the entire portfolio or the individual client portfolio. When an invoice from a customer that exceeds the preset percentage enters the borrowing base, it will not be included in the calculated borrowing base until the concentration comes into compliance. Depending on the individual set of circumstances, the bank/funding source has the flexibility to override this safety rule if desired.
  
  
• Maximum Invoice Age:
  Safety rules can be set to exclude invoices that are x number of days old from entering into the borrowing base, or tiered to reduce the % allowable based upon age.
  
  
• Maximum Invoice Amount:
  Any invoice that is a preset amount can be excluded from entering into the borrowing base until validated. This prevents human error from skewing the borrowing base.
  
  
• ECP:
  Any new invoice can be excluded from the borrowing base if it belongs to a customer that has existing invoices in the borrowing base that are already past their expected collection period (ECP). eRevWorks also uses other proprietary algorithms to manage the borrowing base using calculated ECP.
  
  
• Collections:
  eRevWorks' trained collectors will professionally and sensitively conduct collection activity which will speed up payments and quickly resolve disputes and errors.
  
  
• Posting:
  eRevWorks specialists will post from a feed or file copy supplied by the bank or the client, as well as from checks that went to the bank's lockbox. Posting will be done in the system the same day the information reaches the eRevWorks Processing Center.
  
  

All work performed at the eRevWorks Processing Center is done professionally and in a timely manner. This valuable service enables banks to take advantage of offering Asset-Based Lending to their clients without the hassles of the extra workload involved in maintaining them.