Traditionally, loan agent approval has been a very hands-on, cumbersome process. The latest OCC Comptroller’s Handbook goes so far as to state that "Tracking, monitoring, and reporting ABL collateral can be a manual, time-sensitive process prone to human error.”
By automatically monitoring collateral values, Lendovative’s BB-360® platform provides consistent, accurate visibility that enhances the borrower/lender relationship while also mitigating risk.
The BB-360® service allows credit unions to continually monitor the collateral behind their lines of credit to manage risk while properly funding the business member. We’re thrilled to offer this service and help credit unions capture the elusive ‘complete relationship’ with more of their membership.
Benefits of BB-360®
BB-360 utilizes a multi-step process to define loan parameters, facilitate consistency, and enforce borrower compliance. It then auto-calculates base values for lender review – eliminating cumbersome manual tracking (and the possibility of human error) while greatly increasing visibility. This can allow lenders to take proactive steps to mitigate risk, such as reducing exposure to a particular borrower or collateral type.
Borrower-based lending has always had a perilous dark side – potential losses from borrower fraud or credit risks that were simply detected too late. The idea behind BB-360 is to eliminate the time-intensive (and error-prone) process of tracking and monitoring ABL collateral to significantly mitigate these risks
Reducing the risk of loss empowers lenders to offer loans to a wider range of borrowers, including those who may have been considered higher risk in the past. In addition, BB-360 reduces administrative costs and improves time management for lenders – allowing them to process more loans while reducing the cost of underwriting each loan.
By automatically right-sizing loans based on consistent, standardized factors, BB-360 will help us diversify our loan portfolio by opening up entirely new markets and opportunities for our firm.
By providing real-time tracking of collateral positions, BB-360 offers a transparent and auditable process that can satisfy regulators. Creating a standardized approach to ABL risk management means BB-360 can help lenders comply with regulations related to credit risk, operational risk, and collateral management, among others.
Communication is critical in a borrower/lender relationship. By facilitating active updates and exchanges between all parties, BB-360 will create an environment of total transparency which will also satisfy the strict guidelines of auditors and regulators.
By creating a standardized methodology across all borrowers, BB-360 can help lenders more easily compare collateral positions across their loan portfolio. This can facilitate risk analysis and enable lenders to identify trends and potential issues more quickly. It also helps ensure that lenders are complying with their own policies and regulatory requirements.
In the world of borrower-based lending, 'consistency' can be a hard thing to come by. But the technology behind BB-360 can help deliver a new level of predictability – through a standardized methodology that puts borrowers and lenders on a level playing field.