Dynamic Collateral Monitor

The Dynamic Collateral Monitor connects, with the borrower's authorization, to the accounting system or ERP behind an asset-based loan, such as NetSuite, and reconciles the receivables reported on each borrowing base certificate with the borrower's own ledger, invoices and cash receipts. Differences, invoices with no matching activity and changes in aging, dilution and concentration are flagged for your collateral analysts. Credit officers decide what to do about them, and every decision is recorded.

The problem it solves

Asset-based lenders advance against receivables the borrower reports, usually on a borrowing base certificate and an aging report prepared in a spreadsheet. Analysts check those figures against the last field exam and whatever backup the borrower sends, but between exams they cannot easily see whether the invoices exist, have been paid or have been reissued. Fictitious or recycled receivables, unreported dilution and growing concentrations can go unnoticed until a field exam or a default, and the lender's own record of what was checked is spread across emails and workbooks.

Who it’s for

• Asset-based lending teams at banks, credit unions and commercial finance companies
• Collateral and portfolio analysts who review borrowing base certificates
• Credit officers and loan committees who approve availability and exceptions
• Field examiners who plan and scope collateral exams
• Credit review, internal audit and examiners, who need evidence of collateral monitoring

1. ConnectThe borrower authorizes a read-only connection from their ERP or accounting system, or agrees a scheduled file. The lender's analyst maps the borrower's ledger to the loan's eligibility criteria.
2. ReconcileEach borrowing base certificate is compared with the borrower's ledger as of the same date. Totals, aging buckets and ineligibles are recalculated from the source data and differences are shown line by line.
3. TestInvoice-level tests look for receivables that may not be genuine or collectible: invoices with no matching sales activity, reissued invoice numbers, credit memos after period end, and debtors that never pay.
4. DecideAnalysts review the flags, request explanations or debtor verifications, and recommend availability. A credit officer approves the recommendation or any exception to the loan's terms.

Read-only ERP connection

With the borrower's authorization, receivables, sales and cash data are read directly from NetSuite and other supported systems, without access to change anything.

Certificate reconciliation

Each borrowing base certificate compared with the ledger as of the same date, with differences listed by debtor and invoice.

Eligibility engine

The loan agreement's eligibility criteria, such as aging cutoffs, cross-aging, concentration limits, affiliate and foreign debtors and contra accounts, applied to the ledger data.

Invoice integrity tests

Flags for invoices with no matching order, shipment or payment history, reissued or re-dated invoice numbers, and unusual invoices near period end.

Dilution tracking

Credit memos, write-offs and non-cash adjustments measured each period, by debtor and in total.

Concentration and debtor view

Each account debtor's balance, aging, payment history and share of the borrowing base across the period.

Debtor verifications

Selected invoices sent for confirmation with the account debtor, with the request and response recorded against the invoice.

Borrower workspace

Borrowers submit certificates, answer questions and see open requests in one place, instead of by email.

Availability recommendation

The analyst's recommended availability, the adjustments made and the reasons, sent to a credit officer for approval.

Field exam support

Flags, findings and trends since the last exam packaged to help field examiners scope their work.

Portfolio watch list

Borrowers whose differences, dilution or concentrations are rising, across the whole ABL portfolio.

Audit trail

Every data pull, recalculation, flag, finding and approval recorded with the person and time.

Collateral analyst

Reviews certificates and flags for assigned borrowers and recommends availability

Relationship manager

Sees borrower status and findings and handles borrower conversations

Credit officer

Approves availability, exceptions and eligibility changes

Field examiner

Uses findings and trends to scope and record field exams

Borrower user

Submits certificates, authorizes the ERP connection and answers questions for their own company

Auditor (read-only)

Views reconciliations, findings, approvals and the audit trail without changing them

NetSuite

A read-only connection authorized by the borrower's NetSuite administrator, using a role limited to the records the monitor needs.

Other ERPs and accounting systems

Other systems connected by API where available, or by a scheduled export the borrower agrees to provide.

Loan system

Loan terms, commitments, advance rates and outstanding balances from your commercial loan system.

Lockbox and cash collections

Collections from the lender's lockbox or controlled accounts, to compare with cash receipts in the borrower's ledger.

Field exam tools

Findings and sample selections exported for your field exam team or outside examination firm.

Single sign-on

Lender staff sign in through your identity provider (SAML or OpenID Connect); borrower users have their own accounts with multi-factor authentication.

Work API

Reconciliations, flags and approvals available to your data warehouse and credit reporting through the Moraph Work API.

Single sign-on

Lender staff sign in through your identity provider, so your password and multi-factor policies apply.

Read-only, borrower-authorized connections

ERP connections are authorized by the borrower, limited to the records the monitor needs, and can be revoked by the borrower or the lender at any time.

Role-based access

What each person can see and do follows their role; recommending availability is separate from approving it, and borrowers see only their own company.

Encryption and keys

Client and borrower data is encrypted, with keys Moraph staff cannot use without explicit, time-bound authorization.

Complete audit trail

Every data pull, view, change, decision and export is logged with the person and time, and cannot be edited.

Data residency

Data stays in the hosting region you choose: the United States, the United Kingdom or Australia.

Moraph cloud

Hosted and operated by Moraph in the United States region. United Kingdom and Australia regions are available for lenders outside the US.

Dedicated environment

A single-tenant environment for lenders whose policies require isolation, scoped in the proposal.

Branded borrower workspace

The borrower-facing pages carry your institution's name and branding.

Portfolio set-up

We load your ABL borrowers, loan terms and advance rates from your loan system and agree the certificate schedule for each. We need a loan system extract and a contact from your ABL team.

Eligibility configuration

Each borrower's eligibility criteria are configured from its loan agreement, and your credit team reviews them before use.

Borrower onboarding

We help each borrower authorize the ERP connection or set up a scheduled export, using a borrower guide carrying your name.

Back-testing

Earlier certificates are reconciled against the ledger history, so analysts see how the monitor's results compare with what they already know.

Workflow and roles

Review steps, approval levels, exception rules and roles are configured to match your credit policy.

Training and go-live

Analysts, credit officers and field examiners are trained on their own workflows, and borrowers are moved over in groups you choose.

• The monitor does not prove that a receivable is genuine. It compares reported figures with the borrower's own records and flags patterns worth checking; a borrower who falsifies its ledger can still mislead it, so field exams and debtor verifications remain necessary.
• It needs the borrower's authorization and cooperation. If a borrower will not connect its system or provide exports, the monitor works only from the certificates and backup supplied.
• Connections to systems other than NetSuite depend on the system and the borrower's edition; some will need a scheduled export instead of a live connection.
• It does not decide availability or declare a default. Credit officers approve availability, reserves and exceptions under your credit policy.
• It covers accounts receivable. Inventory, equipment and other collateral classes are recorded as reported but not reconciled to source systems.
• It is not a loan servicing system. Advances, payments and interest stay in your loan system.
• It does not perform UCC lien searches or filings.
• Debtor verification responses depend on account debtors replying; the monitor records requests and responses but cannot compel an answer.

• Pick a borrower who already shares exports and reconcile a recent certificate with the monitor
• Compare the monitor's ineligibles with your analyst's own calculation for the same period
• Review whether each invoice flag explains itself well enough for an analyst to act on
• Ask a borrower's controller to walk through authorizing the read-only connection
• Check that credit officers can see the reasons behind every availability recommendation
• Confirm role separation: who can recommend availability, approve it and change eligibility criteria