COURSE OUTLINE

1. RATIONAL FOR AN ASSET BASED LOAN (“ABL”)

2. ABL, A BRIEF HISTORICAL OVERVIEW

3. UNDERSTANDING THE CASH CONVERSION CYCLE AND ITS ROLE IN ABL.

4. ESTABLISHING AN ABL AREA.

5. UNDERSTANDING THE BUSINESS AND THE ASSOCIATED RISKS ON COLLATERAL

6. THE ECONOMICS OF ABL.

7. DOMINION OF CASH ISSUES

8. ACCOUNTS RECEIVABLE AS COLLATERAL

A. Aging Analysis

B. How are Receivables aged?

C. Invoice date vs. due date (impact on eligibility parameters)

D. Aging codes, what they mean (impact on eligibility)

E. Detail aging vs. summary agings

F. Spread analysis, analyzing the current aging using comparables.

G. Matching turnover, using Receivable statistics compared to spread movement

H. Credit extension and collection procedures

I. Analyzing Receivable concentration and understanding the customer base.

J. Analyzing delinquent accounts

K. Ineligibility issues (what, how much and why)

L. Test of authenticity (shipping, verifications, credit memos, subsequent payments)

M. What is Dilution?

N. Advance rates consideration

O. Other issues (cash control mechanisms, reporting considerations, etc.

9. INVENTORY AS COLLATRAL

A. Initial lending considerations

B. Condition and existence questions

i. Aging of inventory

ii. Purchase vs. sales

iii. Historical CPA book to physical adjustments

iv. Treatment of returns

v. Handling of slow and obsolete inventory

vi. Calculating turnover the ABL way

C. Tour of the Facility

D. Recordkeeping systems

E. Classification of Inventory

i. Raw Materials/ Work In Progress/ Finished Goods

ii. In - Transits

F. Tests of Authenticity

G. Ineligible Inventory

H. Insurance

I. Advance rate consideration

10. REPORTING METHODOLOGIES

11. CASE STUDIES