ACE Monitoring Services are of three types namely ACE Credit Support Inventory Services (CSIS), ACE credit support account receivable services (CSARS) and ACE Secured Distribution (SD). ACE CSIS, CSARS and SD can provide to the band and the borrower a Collateral certificate (Borrowing Base).

A. ACE Credit Support Inventory Services (CSIS)

Field Warehousing is in some cases is not practical, for example, where the change of possession of stocks is difficult because of their nature of the sheer volume of items to be stored. ACE has therefore, developed Credit Support Inventory Services to meet these circumstances. Procedures are similar to those used in Field Warehousing except that the control exercised by ACE over the goods may not be sufficient to constitute a change in possession and to permit a pledge. Because there may not be a change in possession, the legal security of the lender would be a floating charge over the Customer's undertaking and future assets.

CSIS is similar to Field Warehousing in that ACE issues certificates to the Lender, for amount or quantity of all goods received by the customer. These certificates are ACE's guarantee of the existence of the goods and ACE's monitoring over them.

ACE's personnel oversee and record all movement of the customer's goods. As in Field Warehousing the goods can easily be released and the customer's agreement with the lender will probably provide for the repayment of part of the loan or their replacement with other goods or perhaps with another category of asset.

ACE will deliver to the lender periodic reports and inventory certificates as and when required by the lender, although this is usually done at fixed weekly intervals. The lender specifies the reporting requirements in written instructions to ACE. The loan made by the lender can be adjusted against the inventory certificates and the uncertainty that normally surrounds assets secured by a floating charge is therefore removed.

B. ACE Credit Support Accounts Receivable Services (CSARS)

This service enables the lender to make loans against receivables while minimizing his paperwork. At the same time ACE guarantees the existence of the receivables offered as security and ensures that the funds received in payment thereof are properly applied, as they are collected. ACE employees handle accounts receivable and oversee shipping. All accounts receivable are listed properly dated on a schedule, which is sent at regular intervals to the lender together with ACE certificates certifying to the validity of any new invoices. As payments are received by the borrower, they are deposited in the bank account designated by the lender, deposit slip and bank statements are provided to ACE employee.

Weekly the accounts receivable manager prepares a collection and credit schedule listing both cash credits and non-cash credits and furnishes the lender with a copy. All debit and credit documents are processed by ACE and a monthly age analysis is furnished to the lender and the borrower. The lender is thus kept fully informed as is able to regulate the loan according to the circumstances and the risk of false invoices and diverted ones is avoided. The lender's legal security over the accounts receivable may be a floating charge, an equitable mortgage where appropriate or he may have purchased the invoices.

The ACE Certified Accounts Receivable Service combined with the lender's legal security upgrade receivables to prime loan collateral.

Certified accounts receivable service can be adopted to meet the needs of borrowers who deal in hire purchase and credit sales. As before, ACE guarantees the existence of the hire purchase or credit sale agreements ensures that the funds received in respect of those agreements are not diverted and provides the lender with a monthly status report of collateral versus loan, the amount of delinquencies and other information as required by the lender.

ACE Monitoring Services chart the continual movement of stocks (raw material, work progress, finished goods), debtor's positions (receivables) and can be developed according to banker and/or trader need.

C. Services to Traders: Secured Distribution (SD)

Secured distribution offers to manufacturers (Suppliers) who seek financial security in helping distributors and dealers (Customer) handle more of the Supplier’s products. Both Supplier and Customer can benefit from increased sales volume if the Supplier can increase his deliveries with complete safety to himself.

The financial security available to the Supplier is the inventory he has delivered at the distributor’s premises and the accounts receivable generated from the sale of the inventory. Secured Distribution controls these two assets for the protection of the Supplier and helps both parties enjoy a larger turnover.

The Marketing, Sales and Distribution Departments of every company selling a product have one compelling objective. That objective is to get the largest volume of its products into the hands of consumers consistent with the company’s marketing policies. The Finance Department and the Credit Department have the same objective but in addition it is their responsibility to see that the distribution of the company’s products is done in such a way that payment for products sold is assured within a reasonable time.

Secured Distribution is a service tailored to the individual needs of the customer and the form it can take in any specific situation will depend upon the Supplier’s product, his method of distribution, the amount of inventory with the distributor, the distributor’s financial strength, etc.