Continuous, independent visibility over pledged or financed assets, including stock that stays at the borrower’s premises. We confirm that collateral remains in place, quantities are accurate and agreed controls are followed.
What we do
- Physical stock counts and verification
- Reconciliation of stock against records
- Review of movement documents
- Surprise inspections and spot checks
- Process control reviews and audit trail verification
- Exception and management reporting
What the lender gains
- Early detection of shortages or irregularities
- Greater confidence for lenders and investors
- Stronger internal controls
- Less fraud and operational leakage
- Decisions based on accurate reporting
Questions Lenders Ask
How often do you count the stock?
On the schedule set in the agreement, with unannounced counts between visits. The bank receives a position report every month.
Can you monitor stock at the borrower’s premises?
Yes, where the site can be secured. VSM first checks the structure, security, access control, separation of financed stock and the use of dual key control.
Who verifies the count?
VSM, a party other than the borrower. Each count is reconciled to the position reported to the bank.
What happens if cover falls below the agreed level?
VSM reports it and the bank calls for more stock or a part repayment.
Read all the questions lenders ask.
How a Mandate Starts
- We review the goods, the site and the release process with you.
- The bank, the borrower and VSM sign a tripartite Collateral Management Agreement.
- We take control of the goods and report to the bank until it orders their release.
See all fifteen stages or read the questions lenders ask.
More Collateral Management Services
- Collateral Management
- Tax and Freight Facility
- Commodity Exchange-Linked Financing
- Inspection Services
- Secured Distribution
Looking for advisory and logistics? See Advisory and Logistics
See also How It Works and For Banks.