June 17, 2021
Truth in Lending: The Role of the Field Examiner
When applying and being considered for a commercial loan, one important step in the process is the research conducted by a member of the lender’s field examination team.
The purpose of the field examination is to provide timely, on-site analysis of the collateral assigned to the lending institution. The field exam illustrates the quality and performance of the borrower’s collateral and potential liabilities that could off-set its collection. The field exam also allows the lender to have a first-hand observation of the borrower’s operations and interaction with its management.
Highly regarded examiners are knowledgeable, personable and diligent. They make sure that all parts of the exam have been covered and communicate well with their lending partners. Good examiners should know all the right questions to ask during an exam, be able to connect the dots, and understand and react to the answers that they receive.
While other lenders may rely on third-party sourcing of field examiners, Great Lakes Business Credit has its own dedicated team of field examiners who take the time to understand a client’s business and its needs in order to provide the most appropriate lending services.
The field examiner will also spend an appreciable amount of time at the borrower’s business and have access to the borrower’s books and records. While there, the examiner can observe the timeliness of the client’s information flow. The examiner also can determine how up to date (or not) the borrowers records are kept, and if they are accurately reporting the required information to the lender on a timely basis.
In addition, field examiners verify all receivables of a borrower, conduct inventory test counts to determine how fast inventory turns over, and ensures that machinery and other equipment that is being put up as collateral does exist.
Finally, the field examiner also researches the borrower’s tax status and liability to make sure tax obligations, such as sales and payroll taxes, are current.
One benefit of having its own field examiners means that Great Lakes Business Credit can close and fund a loan within 30 days of the loan proposal’s acceptance, and within 30-45 days from application to closing.
Learn all about the application process, loan parameters, and more by visiting bridgebusinesscredit.com/apply/