Field Examination - independent assessment of borrower’s assets and debt-service capability

Keystone Financial Services, Inc. (‘KFSI’) assists lenders in understanding borrowers’ financial capabilities before entering into a lending agreement. Whether you’re a bank, credit union, or asset-based lender, KFSI offers comprehensive Field Examinations to provide you with valuable insights on borrowers’ financial position, and to independently appraise the borrower’s assets.


KFSI broad experience with enterprises, both large and small, across a broad spectrum of industries, enable us to quickly grasp your borrowers’ financial drivers and collateral issues. We assist lenders with designing appropriate procedures to address the issues and risks associated with a particular credit.


Lenders rely on KFSI to quickly and accurately determine the quality of borrowers’ collateral for pre-loan and existing loan situations. The results of our examinations assist lenders in determining the amount to advance their customers, as well as the quality of their collateral and underlying earnings and cash flows. In addition to performing traditional Field Examinations, we are often engaged to consult on structure and borrowing base formulas, as well as for evaluation of trends in a borrower’s business.


KFSI’s Field Examination Advantages

  • Includes inspection of a borrower’s books and records, along with asset value testing focused on assets pledged as collateral support for a lending facility
  • Provide valuable insight into a borrower’s financial viability through a comprehensive strategy that considers, among other things, the elements of a borrower’s operating performance, their liquidity, asset quality, cash flow, borrowing capacity, management, controls, and industry
  • Perform a comprehensive assessment that considers the collective viewpoints of the bank, loan officer and credit department to help effectively mitigate risk for all parties involved
  • Supplement your credit department with standby, high-level expertise and support services
  • Issue “Committee-Ready” reports that highlight key findings and bring the most critical issues to the forefront


Quality Information in a Timely Manner

KFSI performs all Field Examination services in accordance with agreed-upon procedures as requested by the lender. We offer borrower-specific Field Examinations developed in collaboration with the lender, as well as Field Examination based on KFSI or bank-developed templates. Our goal is to provide the lender with quality information in a timely manner. Our reports include the results of our procedures, as well as business insights and recommendations to help in credit decisions.


KFSI Field Examination Analytics

  • Verify A/R balance
  • Review cross-aging and ineligibles
  • Review inventory accounting procedures
  • Review trade payable agings
  • Review for unrecorded liabilities
  • Verify that taxes are being paid in a timely manner
  • Tie supporting ledgers to financial statement balances
  • Review general ledger for unusual items
  • Complete ratio analysis
  • Examine sales dilution


Field Examinations offered by KFSI

  • New Borrower Field Examination
  • Takedown Field Examination
  • Recurring Examinations
  • Physical Inventory Test Counts

Field Examination Service for Lenders