May 24th, 2018
2:00 – 4:00pm
at the Umpqua Bank Plaza
Accounts receivable financing and inventory lending is a type of asset-financing arrangement in which a company uses its receivables — outstanding invoices or money owed by customers — as collateral in a financing agreement. Often, if the borrower has significant inventories, this asset may also be “leveraged” to provide additional working capital support. This type of financing helps companies free up capital that is stuck in unpaid trade receivables or invested in inventory, providing an ongoing, revolving source of funds to facilitate the growth of the business.
- A short background of the industry since the “Great Recession”.
- How the assessment of AR and inventory differs from other types of collateral like equipment or real estate.
- Underwriting guidelines and operational controls used to manage collateral risk.
- How to preliminarily qualify a borrower, by collecting and interpreting the right information.
- Observe and comment on case studies as a group.
- The Three “C’s”.
This Skillbuilder Series workshop will be taught by Rich Denman and Erik Svilich from Cascade Credit Services, Inc. Cascade provides collateral examination services covering receivable and inventory loans made across the United States. Since 1995, Cascade has developed expertise that reflects the specific needs of Lenders by serving Cascade’s Lender Clients in a variety of industries. A collateral examination (or field examination) is an analysis and written evaluation of a borrower’s collateral, focused primarily on accounts receivable and inventory. Bring your own cases and questions to discuss!
Rich Denman founded Cascade Credit Services in 1995. Prior to founding Cascade, Rich spent over twenty years at US Bank, principally in the Portland, OR commercial banking group. From 1984 to 1994, Rich managed the Accounts Receivable Department, overseeing the portfolio underwriting and monitoring function. Responsible for commitments in excess of $1B, Rich also helped to structure the bank’s first trade receivables securitization. Rich has a BA in Economics from Oregon State University and is a graduate of Pacific Coast Banking School. Beyond the excitement of collateral exams, Rich enjoys being in the mountains and trails, does hot yoga, and enjoys reading historical novels and the Game of Thrones series.
Erik Svilich joined CSS in the spring of 2017 and is now a Senior at Portland State University. He is completing his Bachelors of Science in Finance. Before joining Cascade, Erik worked for Farmers Insurance for over a year while in school specializing in insurance for businesses in across industries. He is an Eagle Scout, enjoys card games, loves any outdoor activity rain or shine, and has an espresso hobby.