Accounts Receivable and Inventory Financing

Accounts Receivable and Inventory are the most fundamental form of “Asset-Based” Commercial Lending. Commercial borrowers use the value of these assets (also called working assets) as collateral to secure financing to produce and sell their products and services. Often, bankers will take Accounts Receivable and Inventory as “side” collateral because their true comfort is provided by the borrower’s real estate, which is usually required as a condition of the loan.

Pledging real estate may not always be an option for your borrower. The primary reason for requiring real estate as collateral is caused by the perceived inability to control and monitor the working assets.

This course will cover Accounts Receivable and Inventory Financing risks, and present how a bank can prudently manage these risks. It will give a deeper understanding of how Accounts Receivable and Inventory can provide an adequate form of collateral to support borrowings for the purpose of financing inventory; financing acquisitions; restructuring debts and tiding companies through periods of growth and distress.

After completing this course, the participant will be less hesitant to enter this type of financing and will be able to recognize when Accounts Receivable and Inventory Financing is required; how to evaluate potential borrowers, and how to structure these transactions to remain in compliance with the regulatory authorities.

What You Will Learn:

  • Types of Accounts Receivable and Inventory Financing
    • Asset-Based Lending
    • Secured Financing
    • Blanket Receivables Lending
  • Accounts Receivable and Inventory Financing Structures
  • Evaluating the Borrower
  • Evaluating the Collateral
  • Underwriting ARIF Loans
  • Administering ARIF Loans
  • Disbursing Revolving Loan Advances
  • Factoring and Third–Party Vendors Providing ARIF Software
  • Verification of Accounts Receivable and Inventory

Who Should Attend?

Senior Credit Officers, Senior Loan Officers, Commercial Loan Officers, Consumer Loan Officers, Credit Analysts, Loan Review Officers, Loan Administration Personnel


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   OnDemand Recording Only - $295   
   CD-ROM and Hardcopy Handouts - $345