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www.crowehorwath.comAudit  |  Tax  |  Advisory  |  Risk  |  Performance

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Streamlining Financial Due Diligence:

The Crowe Navigator® Electronic Collateral Analysis (ECA) Solution

Audit  |  Tax  |  Advisory  |  Risk  |  Performance The Unique Alternative to the Big Four®

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Analytics and Reporting

Benchmarking

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Data Warehousing, Integration, and Governance

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Crowe Horwath LLP is an independent member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath International is a separate and independent legal entity. Crowe Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other Crowe Horwath International member. Accountancy services in Kansas and North Carolina are rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. © 2015 Crowe Horwath LLP

In today’s economy, the early identification and management of risk is essential, which means that commercial lending institutions need timely information about borrowers’ performance. Unfortunately, the data collection and analysis can be extremely resource-intensive.

Crowe Horwath LLP developed the Crowe Navigator ECA solution to assist lenders in obtaining the information they need to take a deeper dive behind the numbers presented on an automotive dealership financial statement. The process offers an efficient, effective means to electronically supplement or complete lender financial due diligence. The results provide the details behind the numbers and pinpoint potential credit review adjustments not visible on the face of the dealerships manufacturer statement.

Understanding and Managing Portfolio RiskThe Crowe Navigator ECA solution provides the tools and process for streamlining financial due diligence. Our financial specialists begin by extracting information directly from dealership management systems to collect the data needed for analysis. We review the data to provide detailed reporting and an executive summary of findings and observations to compare with lender-configured criteria.

The Crowe Navigator ECA solution financial analysis provides details on accounts receivable and payable to call attention to aging, large balances; related party balances; and credit balances. The analysis also provides a view of general journal entries to illustrate potential areas needing review, including:

■ Cash and net worth plugs

■ Shareholder receivables/payables buried in incorrect financial statement lines

■ Year-end audit adjustments posted to payables

■ Long-term assets found in short-term financial statement lines

The Crowe Navigator ECA solution data collection, analysis, and reporting are handled with the security and confidentiality you expect from an independently certified public accounting firm. Our access to data is read-only, and we maintain the integrity of existing financial records.

Insightful Information for Lenders and BorrowersThe information provided by the Crowe Navigator ECA solution can help lenders address the challenges of monitoring and managing portfolio risk in a cost-effective manner. Electronic transmission and communication reduce the time and effort required to complete financial due diligence. Exception reporting can be completed before or in lieu of fieldwork, translating to less time spent at the dealer site. And table mapping capabilities significantly reduce the time needed to reconcile trial balances to dealership manufacturer statements.

The advantages extend to dealers when the lender shares the reporting to highlight exceptions and areas needing cleanup. The Crowe Navigator ECA solution gives dealers insight into costs, cash flow, and areas for potential process improvement. The time commitment from dealer personnel is minimal, keeping their focus on day-to-day activities to enhance profitability and maintain an optimum credit position.

Crowe knows banking.With more than 50 years of financial industry experience, Crowe has the expertise to help banks and captive finance companies of all sizes meet complex financial management challenges and use data to understand and manage portfolio risk. For more details about our banking performance services and the Crowe Navigator ECA solution, contact:

Mark Blosser +1 317 706 2618 mark.blosser@crowehorwath.com

FS-16005-005A

Use the floor plan with no inventory analysis to look for possible out-of-trust situations. This compares vehicle sale date, funded date, and payoff date.

Table mapping features compare trial balance accounts with dealer statements.