Lending Inventory Audits & Collateral Confidence
Independent, data‑driven inventory audits that strengthen underwriting, validate borrowing‑base eligibility, and improve ongoing collateral monitoring.
Lenders need confidence that the inventory supporting a borrowing base is real, accurate, and lendable. We provide independent, data‑driven inventory audits that validate eligibility, identify aging and valuation risks, and highlight issues before they impact availability. Our process aligns with field‑exam and ABL standards, giving lenders clearer collateral insight and giving borrowers a smoother, faster path through underwriting.
Request a lending audit now.
Who This Is For
- Commercial lenders & ABL teams seeking independent verification of inventory collateral, borrowing‑base eligibility, and field exam support.
- Borrowers preparing for asset‑based facilities who need clean data, faster underwriting, and fewer surprises during field exams.
What We Audit
- Inventory existence & condition (spot checks, reconciliations, obsolescence) and location controls (owned, third‑party, consignment, in‑transit).
- Eligibility testing by class (finished goods, WIP, raw materials), with ineligible carve‑outs consistent with field‑exam norms.
- Aging & turnover analytics to flag slow‑moving and obsolete stock that drives advance‑rate haircuts.
- Valuation approach review (cost/NRV/NOLV and reserves)
- Process & control environment (SKU master integrity, cycle counts, ERP reports, change control) to reduce recurring exceptions.
- Field‑exam readiness: what the examiner will test, how, and where exceptions typically occur.
Lenders Benefits
- Independent collateral opinion focused on eligibility and liquidation realism (e.g., NOLV‑based considerations where relevant).
- Exception log & remediation plan (inventory aging, valuation, policy gaps, reporting fixes) aligned to ABL guidance.
- Monitoring cadence recommendations that complement lenders’ field exams and collateral checks.
What Borrowers Gain
- Faster underwriting and cleaner field exams via pre‑work that surfaces eligibility issues before the lender does.
- Higher confidence in the borrowing base by managing aging risk, concentration, and seasonality impacts that reduce availability.
- Repeatable BBC process (data sources, reconciliations, sign‑offs) that reduces back‑and‑forth and post‑funding exceptions.
Our Lending‑Audit Method (3 Steps)
- Discovery & Data Intake: Pull inventory listings by class/site, aging reports, recent BBCs, AR linkage (where required), and policies.
- Tests & Walkthroughs: Reconcile to GL, perform targeted existence/condition checks, and review valuation method (cost / NRV / NOLV).
- Report & Read‑Out: Deliver a lender‑ready report, exception log, remediation roadmap, and a monitoring checklist aligned to ABL field‑exam expectations.
Typical Issues We Uncover
- Aged/obsolete inventory never cleared from eligibility (advance‑rate haircut risk).
- Consignment or third‑party stock improperly included in borrowable inventory.
- Seasonal goods past sell‑through window (eligibility downgrade or exclusion).
- Reporting mismatches (ERP vs. BBC), unapproved valuation changes, or missing documentation.
Deliverables
- Lending Audit Report (executive summary + findings + eligibility map)
- Exception Log & Remediation Plan (policies, count cadence, SKU master fixes)
- Field‑Exam Readiness Checklist (what examiners will test and how)
Ready to extend finances against collateral with confidence?
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Industry News
Guide to Asset Based Lending Audits
“ABL inventory audits verify the true accuracy, value, and condition of a company’s inventory which gives lenders the confidence they need to structure financing and assess risk effectively.”
Sources: Celtic Capital — Asset‑Based Lending Audits: The Ultimate Guide for Business Owners
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Lending Inventory Audits FAQs
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Lenders gain collateral clarity; borrowers reduce exceptions and speed up underwriting.
Annually or more frequently for seasonal or fast-moving businesses.
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