Keystone Business Consultants, LLC | Financial Institution Services

Keystone Business Consultants, LLC provides customized field examinations, due diligence, workout assistance, and other verification services for banks, non-bank financial institutions, finance companies and investment funds.Keystone Business Consultants, LLC provides the following services for financial institutions:

i. Field Examination

Keystone Business Consultants, LLC develops, in conjunction with its client, a customized program of field examination tests and procedures (“Scope of Work”) in accordance with agreed-upon procedures as requested by a financial institution / investor. Typically, a full-scope field examination consists of seven major sections; accounts receivable, inventory, accounts payable, cash, payroll taxes, financial statements, and management information.The types of field exams offered by Keystone Business Consultants, LLC include (i) New Business Field Examination (a.k.a. Survey Examinations); (ii) Pre-Funding Examination; (iii) On-going Recurring Examinations; and (iv) Physical Inventory Test Counts

ii. Relationship Managers Summary Assessment (RMSA)

Keystone Business Consultants has the ability to provide a financial institution, industrial lender, private funding source, or investor group an assessment of a customer / prospect. The Relationship Managers Summary Assessment (“RMSA”) review, which includes a limited scope field examination is not as intensive as a Risk Committee Review (refer to (iii) below). The RMSA review typically is for a lightly monitored credit facility or preforming equity investment. After meeting with company management our specialists, using historical financial statements and projections, will provide analysis to support that a borrower is able to service its debt at a predetermined or covenanted coverage ratio and to generate excess levels of cash flow to grow the business or meet certain dividend commitments. Keystone’s specialists will perform limited authenticity testing of collateral and underlying financial records.Our professionals have considerable experience in commercial lending, including asset based, cash flow, and hybrid lending, as well as in managing businesses which are experiencing operational or financial challenges.In the case of a borrower or portfolio investment that provides reviewed, complied or internally prepared financial statements, the Relationship Managers Summary Assessment upgrades the quality of information to support sound credit / investment decisions.

iii. Risk Committee Review (RCR)

At Keystone Business Consultants, LLC we work with financial institutions, industrial lenders, and private funding sources who are underwriting new loans or loan renewals, knowing that an important consideration for making a sound lending decision is to have a clear understanding of the character and competency of the borrower.During a Risk Committee Review, our specialists will meet with a prospects / debtor’s management team to discuss functional areas of the enterprise including, but not limited to, sales and marketing, operations, finance, organizational structure, and if appropriate inventory control. During this meeting, the specialists will ask probing questions to determine if the management team is meritoriously running the business. The Risk Committee Review is often used when a lending institution and / or other vested stakeholders need to improve or confirm their understanding of an enterprises business.

iv. Workout Assistance:

Keystone Business Consultants assist financial institutions and equity stakeholders with customers / investments that are in default or showing signs of financial frailty.The Turnaround process is multi-faceted and many activities must be done in parallel. An important part of the process involves planning for the future, another involves negotiation with stakeholders to retain short term viability and allow time for the business to be fixed. The important elements of the Turnaround include (i) Preparing the Business Plan, (ii) Stabilizing the Cash Flow, (iii) Reducing Costs, (iv) Debt Restructuring, (v) Capital Raising, (vi) the CRO. Keystone has the ability to function as an outside consultant or as the CRO (Chief Restructuring officer) reporting to the CEO and/or owner to implement and coordinate these activities.

v. Collateral Monitoring:

Keystone provides collateral monitoring services for financial institutions on a daily, weekly or monthly basis. Whether it is a complex transaction requiring extra monitoring time, or an entire portfolio, Keystone Business Consultants, LLC can assist.Prior to funding, our team of professionals work with borrowers and financial institutions to set up necessary arrangements including lockbox accounts, bank account access, and reporting. Keystone Business Consultants, LLC then uses an established process for reporting the collateral loan status. This includes:

Review of all downloaded deposit information and reporting (daily and weekly) from lockbox bank.
Analysis of accounts receivable aging’s and inventory reports; ineligibles are also computed.
Data entry into the collateral tracking system.
Periodic collateral loan status reports as well as a customized monthly report packages designed to satisfy the financial institution’s specific needs.

vi. Asset Appraisal:

Keystone, through a working agreement with a non-affiliated strategic partner, has access to a highly regarded Full Service Appraisal, Auction, Liquidation, and Consulting firm who are considered among the top commercial and industrial specialists worldwide for Aircraft Appraisals, Aircraft Parts Appraisals, Inventory Appraisals, and all types of Machinery and Equipment Appraisals.As an example our partner has conducted more than 1,800 Inventory Appraisals since 1986 for Financial Considerations, Ad Valorem Taxation, Purchase Price Allocation, and Litigation Support. Their principals are considered among the country\’s foremost experts in Inventory Valuation Theories, Techniques, Aviation Parts and Aircraft, and Liquidation Exit Strategies for the Manufacturing (raw material, work-in-process, finished goods, packaging material, slow-moving, obsolete, and scrap), Wholesale Distribution, and Retail industries. Each of their chief appraisers maintains their senior certification with the American Society of Appraisers (ASA) and/or their Chartered Financial Analyst (CFA) and Certified Management Accountant (CMA) designations.This unique team of certified individuals keeps abreast of current market trends and their effect on value recovery, while concentrating on the analysis and valuation of tangible and intangible assets for Financial Institutions, Asset-Based Lenders, and Corporations.