SYSTEMS AND METHODS FOR ASSET BASED LENDING (ABL) VALUATION AND PRICING
An automated asset based lending (ABL) system that integrates supplier receivables data, allowing financial institutions optimally to value and price lending against those receivables, thus enabling financial institutions to offer suppliers a maximum borrowing base with minimum risk and highest return to the financial institution, further enabling the financial institution to conduct business in multiple currencies, time zones and countries using a computer based ABL process. In an asset based lending system having a client and at least one financial institution, a method for valuing and pricing client's receivables, the method comprising, downloading accounts receivable information from the client, the accounts receivable information having a specified currency, calculating a borrowing base for the client via utilizing debtor risk ratings, pricing profiles, valuation profiles and pricing tiers, and applying fees and interest as specified in the pricing profile associated with the valuation profile.
1 . In an asset based lending system having a client and at least one financial institution, a method for valuing and pricing client's receivables, the method comprising:
downloading accounts receivable information from the client, the accounts receivable information having a specified currency;
calculating a borrowing base for the client via utilizing debtor risk ratings, pricing profiles, valuation profiles and pricing tiers; and
applying fees and interest as specified in the pricing profile associated with the valuation profile.
2 . The method of claim 1 , wherein the valuation profile further comprises configuring valuation tiers.
3 . The method of claim 2 , wherein the configuring valuation tiers further comprises determining the number of debtors to apply against each pricing tier based on a debtor's risk score.
4 . The method of claim 2 , wherein the configuring valuation tiers further comprises determining the percentage of the debtor's receivables to be included in the borrowing base.
5 . The method of claim 2 , wherein the configuring valuation tiers further comprises determining the age of the debtor's receivables to be included in the borrowing base.
6 . The method of claim 2 , wherein the configuring valuation tiers further comprises determining the percentage of any specific tier's debtors to be included in the borrowing base.
7 . The method of claim 1 , wherein the valuation profile further comprises:
selecting a client to test the valuation profile against;
comparing the valuation profile against the current account receivable ledgers to generate a new valuation profile;
comparing the borrowing base with the new valuation profile; and
adjusting the valuation profile to match the new valuation profile.
8 . In an asset based lending system having a client and at least one financial institution, a method for valuing and pricing client's receivables, the method comprising:
receiving accounts receivable information from the client;
managing valuations, pricing and risk for the accounts receivable information;
applying fees and utilizing the valuations to calculate a borrowing base;
receiving a draw request from the client;
transferring funds to the client's operating account;
receiving a deposit from the client; and
upon notification of the deposit, re-calculating the borrowing base utilizing draw request information, deposit information and valuations.