Asset Based Loan and Formula Lines of Credit Policy
This Asset Based Loan and Formula Lines of Credit Policy addresses asset-based loan (ABL) products, underwriting, and related lending operations of a bank, credit union, fintech company, or other type of financial institution. In general, an ABL is a specialized loan product that provides fully collateralized credit facilities to borrowers that may have high leverage, erratic earnings, or marginal cash flows.
Table of Contents
- Purpose and Contents – Topic 1
- Policy Statement – Topic 2
- Definitions – Topic 3
- Risk Management – Topic 4
- Program Administration – Topic 5
- Loan Structures – Topic 6
- Borrower Analysis – Topic 7
- Borrowing Base – Topic 8
- Controls – Topic 9
- Third Party Guarantees or Insurance – Topic 10
- Participations – Topic 11
- Debtor-in-Possession Financing – Topic 12
- Credit Risk Rating Assignment – Topic 13
- Problem Loan Management – Topic 14
- Allowance for Credit Losses – Topic 15
- Audit Policy – Topic 16
- Staff Training – Topic 17
- Retention of Documentation – Topic 18
Recent updates to this product:
03/18/24 Update
Eliminate and/or modify references to the term “Troubled Debt Restructuring” (TDR) with a “Borrower Experiencing Financial Difficulty.”
06/01/23 Update
Eliminate references to allowance for lease and loan losses (ALLL) which was replaced by current expected credit losses (CECL).
This Asset Based Loan and Formula Lines of Credit Policy (approximately 38 pages) is available to purchase from BankPolicies.com in Microsoft® Word format.
NOTE: The complete contents of this product are also included in the Commercial Loan Policy.
Product Update Protection Plan
Ensure your purchase from BankPolicies.com remains current by adding a Product Update Protection Plan to your shopping cart. You’ll automatically receive an updated version via email every time it’s revised, within one year from the last date of purchase.
