Increasingly, Lenders are adding Asset Based Lending (ABL) facilities to their product ranges. This allows funding lines to be calculated against a range of asset classes, not just debtors. These assets can include stock, (including raw materials, work in progress or finished goods) plant and equipment, property, or cash flow loans. These funding lines taken together make up the ABL facility.
EQ Riskfactor’s ABL functionality allows detailed analysis, risk management and reporting on the separate asset classes making up the facility. This analysis is at asset class level, and consolidated at Client level, to give a detailed picture of the underlying collateral, risk trends and utilisation.
Data is uploaded monthly from the Lender’s core systems, and EQ Riskfactor displays not only the current commitment and value of each underlying asset, but also historic movement and a wide range of risk measures. As with the core Client Analysis module, the ABL functionality is highly configurable, and allows selected risk measures to be applied by the Lender against each asset class.
And as with the core EQ Riskfactor functionality for standard Client Analysis, a vast range of reports can be created by the user, and can be scheduled to run automatically. Just as the Client Analysis allows for detrimental trends to trigger a client appearing on a Relationship Manager’s daily Focus List, ABL functionality allows the same, with triggers being set for each asset class on the client, and at levels configured by the user. The ABL module is fully integrated with the full suite of EQ Riskfactor modules and functionality, with the same user interface and menu options, making it easy to use and familiar.
This also allows Alarms and Alerts to be used to give early warning of deteriorating trends in any asset class. Lenders can see ABL clients alongside their standard Invoice Discounting or Factoring clients, and configure portfolios based on their own criteria – by Relationship Manager, region, product, size of facility or other measures.