Due
Diligence Services
Our staff has more than 50 years of experience in the equipment
finance industry. As a group, we have underwritten more
than $1 billion with of equipment leases ranging from $100m to $50
million.
As part of
underwriting our own portfolio over the years, we have developed
expertise to evaluate portfolios and perform due-diligence
service. During our due-diligence audit, we evaluate the
following areas.
Current
portfolio characteristics
- Average
term, size, remaining life, coupons, etc.
- Concentrations
by customer, industry, equip type, state, etc.
- Original
Underwriting Standards
Existence of Policies
and Procedures
- Collection
of financial information
- Description
of company (operations, ownership, history,
locations, customers, management)
Financial
Analysis (ratio and trend analysis for sales, profitability,
liquidity, leverage, cash flow, debt service coverage, and
capital)
Equipment
evaluation (specifications, source of valuation, average
loan to value, marketability, intended use, etc.)
Ongoing
portfolio management
-
Collection
of financial information.
-
Annual
review practices.
-
Policy
Compliance.
- Delinquency
Management
-
Collection
practices
- Delinquency
levels and trends
- Non-accrual
practices
- Restructuring
policies and practices
- Repossession
practices
- Remarketing
history
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