Borrowing Base Verification

Independent Borrowing-Base Verification for Structured Credit Facilities

Concord Servicing’s Borrowing-Base Verification services provide independent validation of the collateral calculations that support borrowing capacity in warehouse facilities, asset-backed lending (ABL), subscription finance, and other structured credit facilities. By independently testing asset eligibility, recalculating borrowing-base amounts, and flagging exceptions, Concord ensures that advance requests are fully supported by conforming collateral. This protects investors and lenders from excess advances and provides the transparency and discipline required for today’s capital markets and private credit transactions.

Our Borrowing-Base Verification offering includes:

• Eligibility Testing: Confirming that collateral assets meet facility-specific eligibility criteria (e.g., obligor type, aging, performance, concentration limits).
• Independent Recalculation: Recomputing borrowing-base availability, advance rates, and haircuts to validate accuracy against facility documentation.
• Draw Request Review: Reviewing and verifying collateral pools backing borrower draw requests to prevent over-funding.
• Exception Reporting: Identifying ineligible or non-compliant assets and providing detailed exception reports for remediation.
• Ongoing Monitoring: Performing recurring reviews (monthly, quarterly, or as specified) to align with investor reporting cycles and borrowing-base certificates.

 Key Benefits:

• Protection Against Excess Advances: Independent recalculation ensures that facilities are not over-funded, protecting lenders and investors from collateral shortfalls.
• Transparency & Risk Mitigation: Objective, third-party verification of borrowing-base math and eligibility provides clear visibility into portfolio quality.
• Early Detection of Deterioration: Regular reviews highlight trends in delinquencies, concentrations, or performance declines before they breach facility triggers.
• Investor Confidence & Market Discipline: Independent oversight enhances trust among investors, rating agencies, and warehouse providers, supporting better pricing and execution.
• Efficiency & Scalability: Streamlined reviews and standardized reporting across facilities reduce administrative burden for lenders and investors while ensuring consistent oversight.
• Support for Diverse Financing Structures: Applies across warehouse lending, ABL, forward-flow, and fund finance facilities—providing governance across both consumer and commercial asset classes.