National Bank of Canada is implementing a software module designed specifically for asset-based lending.
It is part of a commercial loan software package from Advanced Information Resources, called Extended Collateral Control. It covers the whole lending process, rather than focusing solely on the collateral side.
National Bank of Canada has been using the system in its Montreal headquarters and its 15 U.S. commercial lending offices for six months.
The software can track detailed, line-by-line collateral against multiple loans. The module automates the establishment and monitoring of the collateral advance schedule and allows each type of collateral to have a different advance rate.
Users may track collateral at a very detailed level - by specific shares of stock, or the value of each share and changes to those values.
The user also may track collateral at a higher, less-detailed level for accounts receivable or inventory lending.
The system automatically monitors all participations and syndications and can automatically fax information to other banks. Different reports can give users invoice agings, client collateral history, and high debtor concentrations.
Advanced Information Resources is based in Del Mar, Calif.