Risk Assessment
Due Diligence
We support a wide range of transaction structures, client types, and scopes, enabling thorough assessment of collateral, operations, reporting quality, and borrower risk. Each engagement is carefully scoped to align with the lender’s risk management approach, while also reflecting the borrower’s business model, market position, and potential risk factors in a downside or liquidation scenario.
Overview
What this service delivers
A concise view of how we support secured lenders and strengthen risk oversight.
Our experienced examiners—strategically positioned across the United States—bring deep product expertise and broad industry knowledge to every engagement. We support a wide range of transaction structures, client types, and scopes, enabling thorough assessment of collateral, operations, reporting quality, and borrower risk. Each engagement is carefully scoped to align with the lender’s risk management approach, while also reflecting the borrower’s business model, market position, and potential risk factors in a downside or liquidation scenario.
- Full- and limited-scope examinations
- Pre-origination surveys, roll-forward analyses, post-origination recurring exams
- Receivable and inventory verifications, BBC construction and eligibility testing, and assessments of controls, reporting abilities and accuracy
- Hybrid model that blends remote analytics with on-site fieldwork
- Pricing can be fixed to scope or variable daily rate
Expertise
- Sector: General industrials, metals, automotive, consumer/retail, food & beverage, agriculture, oil & gas
- Debt structures: ABL, Securitization (consumer, trade) and broader ABF
- Collateral jurisdictions: US, Canada, Western Europe and Australia, New Zealand, Hong Kong, and Singapore
Outcome focus
Every engagement is designed to strengthen credit risk decisions, improve collateral visibility, and reinforce monitoring controls across the secured lending lifecycle.
Who this is for
- Banks underwriting new secured facilities
- Lenders requiring independent recurring exams
- Institutions with limited internal field exam capacity
- Credit teams seeking sector expertise in Industrials, Metals, Automotive, Consumer/Retail, Food & Beverage, Agriculture, Oil & Gas, Specialty Finance, and Consumer Finance
How we work
- 1Define the Right Scope
We align with the lender upfront to tailor the engagement to the deal structure, borrower profile, and key risk areas—ensuring focus where it matters most.
- 2Build a Clear Plan
We outline timing, staffing, and pricing from the start—whether as an all-in cost or a structured daily rate—so there are no surprises.
- 3Mobilize Quickly
We coordinate directly with the borrower to schedule fieldwork, confirm logistics, and identify key locations for testing and review.
- 4Get On-Site & Validate
Our team goes on-site to test collateral, review books and records, and assess material inventory locations firsthand.
- 5Integrate Across the Deal
Where needed, we work alongside appraisers and legal counsel to ensure alignment across all aspects of the transaction.
- 6Keep You Informed
We provide consistent, real-time visibility—typically daily updates on-site and weekly updates remotely—so you always know where things stand.
- 7Deliver Actionable Insights
Our reports go beyond findings—we provide clear, practical recommendations so you can act with confidence.
- 8Finalize with Confidence
We align with the borrower, conduct an exit discussion, and complete a 48-hour internal QA review (not billed) to ensure a high-quality, defensible final deliverable.
Who this is for
- Banks underwriting new secured facilities
- Lenders requiring independent recurring exams
- Institutions with limited internal field exam capacity
- Credit teams seeking sector expertise in Industrials, Metals, Automotive, Consumer/Retail, Food & Beverage, Agriculture, Oil & Gas, Specialty Finance, and Consumer Finance
How we work
- 1Define the Right Scope
We align with the lender upfront to tailor the engagement to the deal structure, borrower profile, and key risk areas—ensuring focus where it matters most.
- 2Build a Clear Plan
We outline timing, staffing, and pricing from the start—whether as an all-in cost or a structured daily rate—so there are no surprises.
- 3Mobilize Quickly
We coordinate directly with the borrower to schedule fieldwork, confirm logistics, and identify key locations for testing and review.
- 4Get On-Site & Validate
Our team goes on-site to test collateral, review books and records, and assess material inventory locations firsthand.
- 5Integrate Across the Deal
Where needed, we work alongside appraisers and legal counsel to ensure alignment across all aspects of the transaction.
- 6Keep You Informed
We provide consistent, real-time visibility—typically daily updates on-site and weekly updates remotely—so you always know where things stand.
- 7Deliver Actionable Insights
Our reports go beyond findings—we provide clear, practical recommendations so you can act with confidence.
- 8Finalize with Confidence
We align with the borrower, conduct an exit discussion, and complete a 48-hour internal QA review (not billed) to ensure a high-quality, defensible final deliverable.
In practice
Recent engagements
Recent diligence work that informed credit risk decisions.
Risk identification + mitigation
$1B+ Syndicated Credit Facility
$1B+ ABL, Syndicated Credit Facility with 6+ Borrowers based in the US, Canada, and Western Europe with 10+ borrowing base components.
$20MM Bilateral Credit Facility
$20MM ABL, Bilateral Credit Facility with 1 Borrower based in the US with 8 divisions and collateral components (A/R).
$2MM Lender Finance Facility
$2MM Lender Finance, Bilateral Credit Facility with 1 Borrower based in the US and 10+ locations.
Construction & Solar Installation Borrower
A regional lender engaged Core Vision to perform a collateral examination of a construction and solar installation borrower experiencing rapid growth. We conducted a comprehensive review of accounts receivable, contracts, borrowing base data, and inventory, with a focus on billing practices, retainage exposure, lien priority risks, and reporting integrity. Our work identified unreported retainage receivables, documentation gaps supporting progress billings, and weaknesses in inventory reporting. These findings resulted in approximately $974K of borrowing base adjustments, representing ~27% of the borrower’s reported availability and ~39% of the $2.5MM credit facility. The adjustments were primarily driven by the exclusion of retainage and other ineligible receivables, materially reducing availability and improving collateral accuracy. The engagement enabled the lender to refine eligibility criteria, enhance reporting requirements, and strengthen ongoing monitoring of the facility.
Accounts Receivable Irregularity Review
A credit union engaged Core Vision to conduct a targeted accounts receivable review following irregular aging patterns and delayed collections. We performed invoice-level testing, credit memo analysis, and subsequent cash receipt validation. Our review identified that a significant portion of receivables were billed prior to service completion and that credit memos were routinely used to refresh aging balances. Based on these findings, we recommended borrowing base ineligibles totaling approximately $2.6MM, representing ~38–40% of the borrower’s reported accounts receivable balance. These adjustments aligned the borrowing base with realizable collateral value and provided the lender with greater transparency into true availability.
Q&A
Answering the questions asked first
A concise view of when to engage, what decisions we support, and how to get started.
When should we engage CoreVision?
- When evaluating new transactions or complex credits requiring independent diligence
- When internal teams are at capacity or need specialized expertise
- When borrower reporting is inconsistent, delayed, or lacks transparency
- When implementing new systems, processes, or collateral monitoring frameworks
- When seeking to enhance credit discipline, visibility, and operational efficiency across a portfolio
What decisions will your work support?
- Credit approval, structuring, and underwriting decisions
- Collateral eligibility, advance rates, and reserve determination
- Ongoing portfolio monitoring and risk management actions
- Identification and remediation of reporting, operational, or control weaknesses
- Strategic decisions related to process design, technology implementation, and resource allocation
What do you need from us to get started?
- A high-level overview of the transaction or portfolio, including structure and key risk considerations
- Access to relevant borrower reporting (e.g., borrowing base certificates, agings, financials)
- Alignment on scope, timelines, and key objectives
- Introduction to key internal stakeholders and, where applicable, borrower contacts
- Any existing policies, procedures, or system context relevant to the engagement
Need an examination?
Whether it is a pre-close exam for a new facility or recurring coverage for your portfolio, we can scope an engagement that fits your needs.
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