Borrowing Base - Overlooked Ineligibles Can Affect Collateral - Part 4
Subscribe to this pageBorrowing Base - Overlooked Ineligibles Can Affect Collateral - Part 4
In our first installment on Inventory ineligibles we looked at raw materials, work-in-process, private label, and in transit inventory. We outlined why these types of inventory should be considered as ineligible and also showed the effect on the BBC when our field examiner applies reserves to several of the ineligible categories not reported by the borrower. In the following presentation we will continue our discussion of inventory ineligibles by covering the following categories: offsite, overhead, and slow moving/obsolete inventory. Additionally, we will summarize the difference between the Examiner’s calculations and what was reported on the BBC.
