Financial institution services
Customized verification, due diligence, and monitoring.
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.
i. Field examination
Keystone develops, in conjunction with its client, a customized program of field examination tests and procedures — the Scope of Work — in accordance with agreed-upon procedures as requested by the financial institution or investor.
Typically, the general Scope of Work includes analysis of a borrower's accounts receivable, inventory, accounts payable, cash, payroll taxes, and insurance.
- New Business Field Examination
- Survey examinations supporting underwriting of a prospective borrower.
- Pre-Funding Examination
- Verification of collateral and reporting integrity ahead of initial advance.
- On-Going Recurring Examinations
- Scheduled re-examination cycles aligned to credit risk and facility size.
- Physical Inventory Test Counts
- On-site test counts validating quantity, condition, and unit costing.
ii. Collateral monitoring
Keystone provides collateral monitoring services for financial institutions on a daily, weekly, or monthly basis. Whether it is a complex deal requiring extra monitoring time or an entire portfolio, our team can assist.
Prior to funding, our professionals work with borrowers and financial institutions to establish the necessary arrangements — including lockbox accounts, bank account access, and reporting — then apply an established process for reporting collateral loan status.
- Review of all downloaded deposit information and reporting from the lockbox bank, daily and weekly.
- Analysis of accounts receivable agings and inventory reports, including computation of ineligibles.
- Data entry into the collateral tracking system.
- Periodic collateral loan status reports and customized monthly report packages designed to satisfy the institution's specific needs.
iii. Asset appraisal
Through a working agreement with a non-affiliated strategic partner, Keystone has access to a highly regarded full-service appraisal, auction, liquidation, and consulting firm considered among the top commercial and industrial specialists worldwide for aircraft appraisals, aircraft parts appraisals, inventory appraisals, and machinery and equipment appraisals of all types.
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 and 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 senior designation with the American Society of Appraisers (ASA) and/or their Chartered Financial Analyst (CFA) and Certified Management Accountant (CMA) designations. This team of certified individuals possesses a balance of knowledge that allows Keystone to provide clients with a more complete solution to their appraisal challenges.
Our strategic partner's history includes assignments in North and South America, Europe, and the Far East. They keep 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.