The basic accounts receivable analysis requires an accounts receivable aging with invoice level detail. Most borrowers also send an accounts payable aging. Those lenders who use the confirmations module also may need the borrower to send a customer master file.

For the inventory service a simple inventory listing with location, item number, item description, product class, on-hand quantity, unit cost and extended cost is expected. Additional information on sales volume and dollars maybe provided.

For both of these services the files can be based on reports right off of the borrowers' accounting systems. The borrowers should not have to pay for extensive programming to deliver these files.

It is very important that the client produce the same reports in the same format every month.

CSI can handle a broad range of file formats - including, text, CSV, spreadsheets, word documents, PDF, HTML, and XML, to name a few. PDF files cannot be based on scanned documents. The file must be readable as text using text editors such as notepad.

The files should be generated by the borrowers' accounting systems. There should seldom be programming cost related to generating these files.

It is very important that the client produce the same reports in the same format every month.

The lender will see the results of CSI's processing using a browser-based application called AR_View. This program enables the lender to view and print reports, output data to spreadsheets and perform online queries and filters of the clients' data. Normally this browser-based application is on the lenders' servers inside the lenders' firewalls.

All of CSI's analysis is provided to the lender. Through AR_View the lender can forward reports to the borrower. CSI does not provided analysis directly to the borrower

If a borrower's file is too big to email they can compress the file and try emailing it again. If the compressed file is still too big, the borrower can make a copy of the file on a CD or DVD and send the disk.

Please contact CSI to discuss cost.

Generally the borrower is informed that CSI is involved in the handling of their financial data.

CSI has a confidentiality agreement with the lender. If a particular borrower wants a separate confidentiality agreement with CSI, that can be arranged.

CSI's application called AR_View gives the lenders the capability to verify the borrower's receivable balances. To use this service the borrower may need to provide a customer master listing.

CSI does not warrant that they will detect fraud. The tools provided by CSI may indicate potential frauds. But the lenders must use CSI's application and investigate questionable transactions themselves.

The impact on auditors is significant. Auditors as a rule should have more time to identify new credit risk situations. This is true because their time spent testing CSI's calculations versus recalculating ineligibles. Also, auditors can use CSI's downloads to select invoices or inventory items for testing. With CSI's help auditors should be more efficient and more effective.

Yes.

Yes. CSI can handle any ineligible calculation that can be logically explained and that has all the needed underlying data.

Yes. Interfaces with other systems can be made. Call CSI about how this is done.

Almost all borrowers can send usable files at no additional programming cost. Borrowers need to be contacted and the specific request made. Many borrowers need to be talked through the file generation and emailing process. CSI's staff can help with this activity.

Borrowers will want to send files for the following reasons:

• It is more efficient to email this data versus producing printouts and sending them to the lender.
• The monthly ineligible calculation will be more timely, accurate, and consistent.
• Many borrowers stop computing ineligibles and simply review the calculations provided by the lender as CSI reports.

CSI's intended turnaround time for a monthly process is less than two business days. The turnaround time for the first time conversion of a file is around five days. These figures a guidelines and a certain deal may take longer if there are extenuating circumstances. If a quicker turnaround time is needed the lender can call CSI and ask for immediate attention.

This depends on a number of variables, including how many deals in the portfolio and the intensity of the lender's effort. The key to a speedy conversion is communication of the need for files with the relationship managers and commitment from the lender's senior management to going electronic.

Virtually all borrowers can send files. The following systems are possible exceptions:

• Manual systems
• DOS based applications
• Unix based applications
• Other older systems running on old operating systems and
• Systems developed by the borrower.

Even Dos, Unix, and some proprietary systems could send files, but it would require some system expertise.

Many borrowers who could send files will chose to find reasons why they cannot send files.

Please contact CSI for additional information on this.

Yes, the lender can use AR_View to send reports or spreadsheets.