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Many commercial lenders provide their own backroom. All debtor
credit approvals and verifications are done in-house to provide
continuity and micromanagement of the portfolio. Workouts
are also handled by in-house staff, often while trying to
fund other clients. Other lenders choose to outsource all
or part of the process. In any case, Credit Officers must
always ask themselves: Am I managing this risk effectively?
Is my borrower viable? Are the receivables going to be paid?
We have many years of experience running a backroom operation.
In an effort to address this concern, Baltimore Credit &
Collection Services has introduced the new Commercial
Lender's Program this year. This program provides
support to commercial lenders in a variety of areas:
- Backroom Services: Services include debtor
credit evaluation, invoice verification (both pre-funding
and on-going), portfolio evaluation, underwriting. These
services can be especially useful during funding crunch
times when the borrower needs money immediately.
- Field audits: A/R audits, A/R aging analysis,
borrowing base monitoring, inventory analysis. BCC$ will
provide the "extra set of eyes" to monitor collateral
when occasional on-site checks are desired, but a full audit
might not be needed. We bridge the gap to ensure you are
properly securitized against loss.
- Debt Collections: This
is where Baltimore Credit & Collection Services can
be the most useful. In workout scenarios,
we hit the ground running to provide maximum return and
reduce losses. The lien against the A/R that you hold becomes
less valuable with time. After a few months, it becomes
very difficult to collect out on bad debt. We have fifteen
years debt collections experience, and know how the game is played.
But we can also help with on-going collections issues. Are
you lending against A/R? Do you have a lien against the
receivables? How do you collect on the current-90 day A/R?
With non-recourse factoring (or lending against A/R in a
borrowing base), the receivables stay with the lender at
90 days and it is incumbent on the lender to collect. Statistics
show that in-house collections efforts are only effective
70% at ninety days and 50% when the receivable ages to six
months. Are your margins large enough to absorb
this kind of loss?
Even when invoices are recoursed back to the client, the
lender still has a financial interest in ensuring that the
invoice gets paid. All too often the recoursed debt is forgotten
once it reverts back to the borrower. A lien on A/R becomes
less valuable as bad-debt accumulates. You want to make
sure that your borrower remains a going concern.
BCC$ bridges the gap between lender and
borrower. We collect on behalf of the lender on non-recourse
loans, and on behalf of the borrower with recourse lending.
A third-party full collection agency is always more effective.
Contact us today to find out how BCCS will get
your company more of the money you've earned!
Call: 410-549-6444 Ext: 201 then press the pound sign
OR E-mail: customerservice@bccs2.com
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