More than ever, banks are facing the challenge of managing and resolving issues regarding an increasing number of troubled loans.  Applied Facts’ team of Certified Public Accountants (“CPAs”) and Certified Fraud Examiners (“CFEs”) is available to assist bank senior management personnel with monitoring and maximizing asset recovery value on these loans.  Applied Facts can:

• Gather, analyze and summarize pertinent information from the borrower’s financial statements, tax returns, operating reports, as well as other relevant information;
• Identify, analyze and summarize the borrower’s profitability, cash flow, and status of loan collateral;
• Perform a forensic examination  of financial records by our CPAs and CFEs for analysis of selected transactions  and identification of sources and uses of funds;
• Analyze bank records, including loan activity, disbursement activity, and unusual transactions;
• Interview involved bank personnel, and locate and interview third party witnesses;
• Assist with  assessments of  a borrower’s physical plant , tangible assets, intellectual property, management qualifications, investment portfolio, and equity/ownership capitalization;
• Utilize computer forensic procedures to identify relevant transactions and communications between parties and to retrieve other pertinent records;
• Perform monitoring services at the borrower’s facility to:
  • verify the propriety of the borrowing base calculations and the proper administration of these calculations;
  • evaluate reasonableness and accuracy of cash flow projections;
  • evaluate amount and collectability of customer receivables;
  • conduct physical inspection of inventory and independent verification of receivables;
  • evaluate liquidation value of receivables and inventory;
  • identify process improvements, and lender’s responses to auditor management letter recommendations for improving controls;
  • identify outside auditor potential negligence;
  • review reporting compliance by borrower to lender;
  • conduct internal controls reviews;
  • determine compliance with loan covenants and restrictions;
  • conduct special purpose investigations;
  • assist with developing litigation intelligence and evidence;
  • determine the status of collateral pledged by borrowers to secure loans;
  • evaluate the existing risk rating system;
  • evaluate the use of the agreed upon risk rating system;
  • evaluate the existing loan review process;
  • evaluate the use of internal vs. external loan review.

Through our network of international affiliates, Applied Facts is in a unique position to assist banks on a global level, particularly in the Pacific Rim countries and India.