Collateral is something of value that a borrower pledges at a bank’s or credit union's request to mitigate the financial institution’s risk in the event of nonpayment.
In banking, an exception is an item that needs attention because it does not meet certain predefined requirements. Collateral exceptions pertain to borrowers’ assets that are pledged for loans.
Collateral imaging involves the use of technology to scan, save, and organize collateral-related documents.
Collateral inspection is a process performed by financial institutions to confirm the value of the collateral used as security in loans.
Collateral perfection is a process that financial institutions go through to protect their ability to take ownership of collateral in the event of default. Maintaining proper documentation and ongoing tracking procedures are key steps for perfecting collateral.
Commercial credit analysis helps financial institutions properly assess commercial borrowers’ creditworthiness.
Commercial credit analysis ratios are used by underwriters in business loan determinations.
Commercial lender reports provide lenders with important information about a variety of topics, especially with regard to existing relationships and potential lending opportunities.
A commercial loan is a loan that is made to a business entity, as opposed to a loan that is for personal or household use.
Although similar and related to credit document imaging, commercial loan imaging pertains more specifically to the management of loan and collateral documentation.
The phrase “commercial loan software” is frequently used by bankers when referring to loan origination systems and document preparation technology.
Commercial loan tracking is the process of monitoring loan documents, collateral, exceptions, compliance requirements, and key milestones throughout the life of a commercial loan to reduce risk, improve visibility, and ensure complete, accurate loan files.