Asset Based Lending is grounded on the concepts of valuing and revaluing of assets, tracking, monitoring, and analyzing trends. The collateral is the primary source of repayment, and the loan is tied to fluctuating asset values.
CADENCE|ABL manages multiple loans under a single client relationship. Those loan types include Lines of Credit, Term Loans, and others.
Interest and fees are calculated on a periodic billing statement. Additional collateral fees are calculated and charged during that period.
All loan transactions create a general ledger entry. Those loan transactions include:
Loan balances are managed through ledger history, trial balance and analysis reports.
Collateral Features
CADENCE|ABL manages collaterals by calculating availability used to support a loan balance. Collateral is managed in a bulk basis borrowing certificate or declaration posting.
User rules establish the net value and limits which calculates real time availability.
With CADENCE|ABL, multiple borrowing bases can be combined to support a single loan balance. Collateral borrowing base types include:
Other control features include amortizing advance rates, seasonal limits, and dependency rules.
CADENCE|ABL manages collateral values through ledger history, trend reports and analysis reports.