Premium Technology's Solution

Premium Technology's software solution was designed to provide banks with the capability of supporting all types of asset based facilities. Like our other applications in the product suite, ABL is built on the core modules.  For example, our Risk Management module interfaces to the bank's risk and credit management systems, which allows the system to track for both credit and compliance issues in both the buyer's and the seller's information.

Unique to our ABL application (but also in our Receivables and Factoring application) is a collection tracking module.  This module allows the lender to track, monitor and value the collateral used in the creation of a credit facility or a revolver loan. The system also tracks and monitors all payments, sweeps, and term loans, which may appear on borrowing based certificates.  The periodic payments or credits towards collateral or loans will affect the value of the ABL facility and Premium's Collection Tracking module allows for the reconciliation and tracking of these payments.
 

FinShare’ Asset Based Lending (ABL)

Asset Based Lending (ABL) is one method banks use to create credit facilities for many of their business customers. In ABL, a company's assets are used as collateral by a bank or other types of financial institutions to generate a facility which companies can draw against for working capital.  Almost any asset a customer has can be utilized as collateral for lending purposes.  Assets, such as accounts receivable, inventory, fixed assets, real estate, cash or cash equivalents, etc can be tracked and monitored by our application. The two primary assets used are Receivables and Inventory.

Credit committees within banks usually create maximum borrowing amount that a customer can have.  Regardless of asset valuations or borrowing base this ABL products generates, the total exposure can not be exceeded.  This is monitored by FinShare's Risk Management product.  Which links with a bank's risk management application.  FinShare’s ABL product will track any asset the bank allows, create or assist in the valuation of each type of asset used, total this valuation, and check maximum facility available.  Then a borrowing base is determined, with the maximum being the value of the assets or the credit available from the bank (which ever is smaller),  for the purpose of creating a facility. Create a Borrowing Based Certificate for online or actual signature by bank and customer.  FinShare’s Loan application will then create a facility.  The application will track all draw downs, payments, credits, outstanding term loans and any other uses of this credit facility. 

• Lowers risk
• Lowers operating expenses 
• Expedites auditing process
• Provides customers with tools to understand the ABL process
• Provides working capital on a fast turnaround basis
  • Reduces the risk by checking credit and compliance of both the buyer and seller with regards to invoices.  Additionally invoices must be checked against OFAC, Patriot Act and AML regulations.  
  • Warehouses excess invoices which will help maintain maximum value for the facilities by replacing invoices that have been retired
  • Checks submitted invoices for duplication
  • Automates uploading of invoices and other borrowing based via a web interface
  • Online negotiation/collaboration between the customer and bank to reconcile payment information