CollateralEdge™ is a sales-enablement platform for community banks. We make it easy for bankers to structurally enhance commercial loans to compete and win new business opportunities.
Bank-Centric And Customizable
Our bank customers can customize our collateral coverage solution to address specific underwriting concerns for particular C&I loan opportunities.
Collateral Amount
Up To $5M
Bank selects the coverage required
We automatically quote 20%, 30% and 40% coverage if approved
No minimum coverage
Duration
18 Month Maximum
Bank selects initial period of 6, 9, or 12 months
We quote two optional quarterly extensions with every deal
No coverage less than 6 months
Collateral Disposition
3 Simple Options
Let coverage expire at end of the initial term
Renew the coverage for up to two quarterly extensions
Choose to claim the collateral in a workout scenario
WHAT THE MARKET IS SAYING
Bank Friendly Solution
“CollateralEdge’s product supplements a bank’s existing loan underwriting and risk management program by providing additional tangible collateral. This solution enables a bank to deliver additional capital to the borrower while remaining the sole lender to the business. Importantly, a bank can provide this additional capital without raising the bank’s risk of loss. CollateralEdge may improve the internal risk ratings of certain loans while reducing potential reserve requirements.”
– Jim Watkins, Former FDIC Senior Deputy Director of Supervisory Examinations
Advisory Board Member
Underwriting Gaps Derail Good Deals
Quality collateral can effectively address common, short-term underwriting concerns.
Financial
Short performance history
Uneven financial history
Recent spike in performance
Customer concentration
Collateral
Inventory heavy
AR aging / geography concerns
Heavily discounted inventory
Asset lite / airball
The Unknown
New industry to the bank
New relationship to the bank
M&A with synergies on the come
Late deal diligence problems
Guarantee
Unavailable guarantee
Weak guarantee
No sponsor support
Encumbered assets
What loans
qualify for
coverage?
Loan Size Range
$100K - $25M
Term Loans Lines of Credit
C&I Loans
Pricing Coverage Is Easy
Our proprietary Pricing Portal fits within a banker’s workflow and enables us to effectively price coverage at the point of sale.
Gain access to our
pricing portal
Send us your information and we will quickly authorize you as a user.
1
Submit the required
loan data
Approximately 60 data points
(in underwriting data) and less than 10 minutes to enter.
2
Instant access to the
coverage quote
Term sheets can be immediately
downloaded from within the portal.
Does CollateralEdge interact with a bank’s borrower?
No. CollateralEdge has no interaction with the borrower and does not collect any borrower identifiable information. Our back-end partner bank has no access to any information regarding the borrower, as well.
Does CollateralEdge require software implementation?
No, our cloud-based platform runs in your internet browser and requires no software implementation or core integration.
Is CollateralEdge the counterparty risk for the collateral supplied to the bank?
No, we have designed our solution to give our bank customers confidence in the reliability of our collateral. The counterparty risk is our back-end bank partners, who are highly rated.
What happens if a customer defaults on the covered loan?
There is no impact to the collateral and the only action requested is to notify CollateralEdge when the default occurs and when the borrower is subsequently out of default (such as with an amendment or waiver.)
What role does CollateralEdge play in workout, liquidation or the bankruptcy process?
CollateralEdge is not a lender or lienholder to the borrower. The customer bank (you) may not forgive all or a portion of the loan, but may in all other respects manage the workout process as you normally would.
