At Finventory we believe that inventory based lending will grow and is there to stay. However, banks are still reluctant to provide this type of loan, as they lack proper tools to map, analyze and monitor the inventory and determine its value. Now Finventory has come up with a solution for this problem in the form of a monitoring, risk management and collateral management platform.
Risk management en analysis
Fully understand your collateral
On a daily basis, Finventory collects inventory data from borrowers’ Enterprise Resource Planning (ERP) and Warehouse Management System (WMS) in order to update your dashboard with key indicators, giving you a timely and accurate insight in the risks of your collateral credit portfolio. We do not only use inventory data, but also related data such as turnover, outstanding invoices and profit margin.
Audit and inspection
Verify your collateral
Periodically, we audit borrowers’ warehouses and IT systems to provide assurance about existence of inventory, reliability of information received and robustness of warehouse and administrative processes. The audits are risk based planned and designed and performed transparantly. The workflow, audit files and reports are accessible via a web interface.
Safeguard your collateral
Finventory can act as pledgeholder on behalf of the creditor, serving the creditor and the borrower in securely guarding the collateral taken into pledge. We design and arrange the legal and operational set up of pledge, taking the applicable legal framework into account. We take action when needed and coordinate an orderly or forced liquidation and safeguard your collateral in case of a default.
Our IT platform
Gathering and processing data from ERP and warehouse management systems into a structured database. Finventory can process both various types of files as well as various types of data. Our platform is user friendly, data can be updated on a daily basis if necessary and has minimum impact on the IT infrastructure of the borrower. Finventory will take care of the transformation of data formats supported by the IT environment of the borrower into our systems.
After processing the data, it’s translated into relevant information on risk factors such as ageing, perishability, seasonality, turnover predictions, selling margins, unpaid products, etcetera. Most importantly, all products are mapped into categories based on the globally recognized Global Product Classification (GPC). This ensures that data can also be aggregated and analyzed on the level of the inventory based lending portfolio.
A borrowing base is calculated, taking into account the various inherent risks and using variable advance rates related to risk drivers. Factors as retention of title and product eligibility are also included.
The platform serves as an analysis and monitoring tool for both bank and borrower. It offers features such as the monitoring of Key Risk Indicators and loan covenants, allowing users to make detailed risk analyses on demand or get snapshots on the evolution of various risk drivers. The mapping of products into uniform categories enables users to analyze data at various aggregate levels. At loan portfolio level it helps making sensible comparisons between various borrowers in terms of credit risk and borrowing base and to monitor the risk of the entire inventory based lending portfolio.
The development and improvement of our platform is an ongoing cycle. New types of inherent risk will be added, using increasingly smart algorithms to, for instance, more accurately predict liquidation values and turnover results. Our vision for the future is a platform that will evolve into a settlement platform, ultimately reconciling the flow of goods with the flow of money within the entire supply chain, and supporting various types of ownership models. Our platform will enable financial institutions to offer settlement services in which buyers, suppliers and financers can all optimize their role within the supply chain cycle.
4751 XN Oud Gastel
+31 (0) 165 763 060