Getting started with 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.

What it is for

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.

• Borrowing base certificates are checked against backup the borrower chooses to send
• Invoices with no shipment, no payment history or a reissued number are hard to spot between field exams
• Dilution, aging and concentration changes are calculated by hand each period
• The evidence of what was checked, and what was decided, is scattered across workbooks

Who uses it

• 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

Before you start

• Your organization licenses Dynamic Collateral Monitor from Moraph.
• A Moraph client account in that organization, signed in.
• Access to Dynamic Collateral Monitor in Moraph Apps, given by an administrator in the Moraph Portal under People and access.
• For setup: the product administrator role.

Steps to get started

1. Sign in at app.moraph.com with your Moraph account.

2. Open Dynamic Collateral Monitor from the launcher. The first time anyone opens it, its workspace is created from the default described in Workspace reference.

3. Check your role: what you can see and do depends on it. See Roles and permissions.

4. Product administrators: work through Set up Dynamic Collateral Monitor before your team starts.

5. Everyone else: start with Everyday tasks.

Where to go next

• Set up Dynamic Collateral Monitor
• Everyday tasks
• Connect your systems
• Security, data and compliance
• Troubleshooting and the support guide
• Product overview on moraph.com