Creditors extending loans or taking secured positions in a business seek to manage their exposure and avoid becoming reluctant investors (when repayment of their loans becomes tied to the success of the business.) To meet the specific needs of the lender in evaluating and monitoring the credit, we offer a tailored version of our otherwise comprehensive due diligence programs. This "tailored" version can be highly customized to the specific needs of the specific lender. Our goal is to help you understand the viability of the borrower and safety and condition of your collateral. Our third party assessments can also mitigate your exposure to lender liability claims in some troubled-debt situations. Specified Services - Credit Extensions Viability of the Credit Collateral Review Business Monitoring Intangible Assets Exiting the Credit Viability of the Credit We offer a varying levels Business Assessments, from basic to comprehensive. These assessments are designed to help the lender understand the risk associated with a particular credit. Our assessment process is similar to our due diligence services, but our scope is adjusted to meet the particular needs of the client. In general, Axiomate's due diligence team examines the books, business' infrastructure and reputation of the business. We seek to identify and understand the strengths, weaknesses, opportunities and threats of and to the business. Our services work in concert to understand the kind of future the business can build from its history, management team and resources. We can perform an extensive review of the borrower's finances. This work includes developing a thorough understanding of all key accounts on a working trial balance with a comprehensive trend analysis of the numbers. This is not a traditional audit, but rather a comprehensive understanding of the interrelation of numbers to business operations. We assess management's commitment to its business plan and budgets so that you can assess your reliance thereon. We routinely review the adequacy and completeness of the company's internal accounting systems, reporting (including the integrity of reports it provides the lender,) cash management and internal control procedures. We study the IT infrastructure; look for hidden assets and liabilities; and understand "owner take-outs," looking at all of the direct and indirect ways principals compensated themselves. We can perform an extensive collateral review to establish the existence, condition and state of controls concerning any collateral established in the Security Agreement. We will report on any threats to the integrity of the collateral or systems managing the collateral. We can also help the lender and management establish meaningful metrics and reporting routines. Collateral Review To the extent desired, we will validate the existence and substantiate the values of the key assets that comprise the borrowing base. We can examine the collateral, assess its condition, validate its liquidity and estimate its liquidated value. Our review extends from checking the integrity of reporting systems, to identifying problems within the borrowing base (ineligible accounts from concentrations, contra-accounts, etc, as well as slow-moving inventory) to finally understanding certain nuances of the business that are not routinely caught in collateral exams. For example, we routinely crosscheck the receivable aging to customer service histories and the sales pipeline to better understand the business' dependence on slow-payers for its continued viability. Our collateral review can be employed as part of credit due diligence, at the inception of the loan to establish reporting routines, as an on-going compliance exam, and/or in troubled situations when the lender wishes to monitor the credit a bit closer. Our reports to you will include our analysis plus all of our workpapers. Business Monitoring We can perform ongoing business assessments, reviews, collateral reviews or simply monitor business performance in circumstances where the lender wishes to monitor the business more closely. At the lender's discretion, our work can range from monthly collateral exams and preparation of the borrowing base reports to simply reviewing such reports. Intangible Assets Axiomate's technology and subject matter experts may be called upon to assist the lender in understanding the ongoing and liquidated value of a borrower's intangible assets. This can be helpful in certain credit extension circumstances where the borrower's credit needs fully tax the tangible borrowing base. This can also be helpful in assessing the liquidated value of the business in troubled-debt situations. Exiting the Credit Our staff is experienced in the lending process from the debtor's perspective. In some cases, we may be able to assist the debtor in securing new, more appropriate financing when its business no longer fits the lender's lending criteria. In very troubled circumstances, we have experience in closing down a business and liquidating assets so as to achieve maximum recovery and minimum risk for the lender.