Tag

field exam

2 insights

Proportional circles showing a borrowing base of $8.30 million at closing and $6.88 million after the first field exam, with four smaller circles for the adjustments between them: $765,000 of pre-billed invoices, $240,000 of rent reserve, $213,000 from excess dilution and $200,000 of demo units.

The Borrowing Base Shrank After the First Field Exam

A $60 million hardware reseller closed an asset-based line on an $8.30 million borrowing base. The first field exam tested the same collateral and found $6.88 million, and planned headroom of $1.80 million fell to $382,000.
Financing StrategyBorrower Advisory
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A single stacked bar of the all-in annual cost of an $8.0 million asset-based facility at a $6.0 million average draw, totalling $554,500, with a marker showing that a competing facility quoted 75 basis points higher costs $505,500 all-in.

The Rate Is on Page One. The Running Cost Is on Page Forty.

Two facilities quoted 75 basis points apart. Once field exams, appraisals, collateral monitoring and the finance team's own hours are counted, the cheaper-looking one costs 82 basis points more to run. The gap reverses entirely.
Financing StrategyBorrower Advisory
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