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Beeftrak offers lenders a management tool to manage risks associated
with pledging cattle as loan collateral.
From breeding stock all the way through the supply chain to feeder
cattle, the cost of doing business dictates that cattle as an asset
or commodity are heavily financed. Financiers generally assign cattle
as security on their loans by way of a security agreement on a group
of animals. The secured animals may or may not be further identified
with a brand and, given the informal circumstances in which cattle
are raised, grazed and assigned to feedlots, it is not always possible
to know where the asset is located at any one time.
Financiers to the cattle industry have traditionally been very dependent
upon a high level of "relationship capital" to protect their
interests. However, it is never sufficient to do business on a handshake.
By combining state-of-the-art technologies with the necessary support
services Viewtrak's Beeftrak system can help financial institutions
effectively manage their cattle loans portfolio.
Unlike collateral-management systems that cannot track assets at
the individual animal level, Beeftrak provides the lending
institution with an Internet-based tool that tracks the movement of
each animal through its life-cycle from primary producer to processor,
and provides accurate, up-to-date valuations. Beeftrak:
- protects lenders offering loans on cattle that have already been
pledged as collateral by allowing on-line searching, tracking and
notification of the actual status of the cattle
- helps manage risk associated with individual and overall loan
portfolios by providing inventory valuation reporting to monitor
the value of the loan against actual market values
- protects against conversion of collateral to cash by monitoring
the status and ownership of cattle, either through monitoring or
by receiving "pushed" reports when cattle have been sold
- protects against catastrophic food safety incidents by being able
to source-verify individual animals, thus proving their health
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