Services

Collateral Management Services

Douglas-Guardian has provided quality Collateral Management Service since 1932. There are various levels of control we can offer depending on the situation and the needs of the lender. Our various programs are driven by an unwavering commitment to quality, highly experienced personnel, and trusted technological expertise. Our service offerings include the following:

Inventory Control / Accounts Receivables Control

As our most restrictive control, this approach is designed for situations where a customer has run into financial problems. Douglas-Guardian can assist by securing the inventory at the customer’s place of business or at an independent outside facility while only allowing shipments as authorized by the lender. Typically, in these situations a Douglas-Guardian employee would come to the facility to unlock the warehouse and allow goods to be withdrawn by the customer based on written authorization from the lender. In the event payment is a requirement upon the release of product, we will secure the payment and forward it to the lender.

For accounts receivable, Douglas-Guardian can set up a program to confirm that the goods have been shipped or that the services have been provided. If payments on accounts receivable are received at the customer’s place of business, we can again arrange to secure the payments and have them forwarded to the lender.

Secured Distribution

Douglas-Guardian’s Secured Distribution services are designed to allow a manufacturer or supplier to maintain or increase shipments to distributors/dealers that require deferred payment terms. They also work to control the financial risk involved in such a transaction – helping both the supplier and customer reach their ultimate goal which is to increase sales.

Establishing our service on the customer’s premises, Douglas-Guardian takes the necessary steps  to operate its services in a manner which satisfies both the customers’ need for ready access to inventory and the suppliers’ need to have assurances for the payment of goods shipped from the customers’ premises. Typically, this process utilizes the customers’ employees to serve as Douglas-Guardian’s on-site agent to monitor the inventory on a day-to-day basis. From there, a Douglas-Guardian company employee would then examine the inventory and records on a periodic basis to ensure compliance.

Collateral Monitoring

In this situation, Douglas-Guardian monitors the activity on-site without actually taking control of the inventory. This service can range in scope anywhere from issuing management reports, to taking periodic inventories, to putting a Douglas-Guardian agent/employee on-site to monitor activity. Depending on the frequency and duration of our activity on-site, we will determine whether it is best to utilize one of our local employees, or whether to bring someone in from another area.

Collateral Examination Service

Douglas-Guardian also provides examination services to banks and other financial institutions. Our Collateral Examination Service has been designed for reporting the level of inventory and/or accounts receivable (borrowing base components) through field examinations. This service is designed to provide lenders with current information on the condition of their borrowers. This can be especially important in the case of borrowers requesting an increased line of credit, new client requests, or with existing borrowers experiencing cash flow problems. A typical examination would require 2-3 days at the borrowers’ place of business depending on the scope of the review, number of locations involved and the quality of the borrower’s records. Collateral examinations are an alternative in those situations where the lender requires information on their borrowers but does not require the day-to-day monitoring or control provided by our other services.