Inventory financing software for lender servicing operations
Inventory-backed credit lines and combined AR-plus-inventory ABL facilities are some of the most operationally demanding products a commercial lender can run. The collateral moves, the borrowing base recomputes every reporting cycle, and eligibility rules have to be enforced on every certificate. Zolvo automates the servicing and back-office operations for inventory financing lenders. It augments the systems you already run, it does not originate loans, underwrite collateral, or act as your system of record.
Why inventory-backed servicing is hard to scale
Every inventory facility carries a borrowing base built from eligible inventory, advance rates, sublimits, ineligibles, and reserves, and that base changes as borrowers submit fresh inventory and aging detail. Recomputing it, enforcing eligibility, and catching covenant drift by hand is the work that grows fastest as your book grows. Add an AR component to the line and you also inherit receivable verification and a heavier reconciliation load.
The result is a back office that scales with portfolio complexity rather than with revenue. Most of that labor sits in three places: monitoring the base, applying cash, and reporting to funders.
What Zolvo automates
Borrowing base and eligibility monitoring. Zolvo tracks the borrowing base, advance rates, sublimits, ineligibles, reserves, concentration, and aging continuously, and flags covenant and eligibility exceptions before they surface at the next certificate. This is the same engine behind our portfolio monitoring capability, focused on the inventory-backed case.
AR verification, scoped correctly. Where a facility has a receivable component, multi-channel debtor confirmation checks invoice amount, PO, delivery, and terms, with duplicate-pledging and fraud detection. Verification applies to the AR component only. Raw inventory is not verified through debtor outreach, so we are honest about where confirmation adds value.
Reconciliation and collections. Confidence-scored payment reconciliation parses bank deposits and matches batched, partial, and consolidated borrower remittances back to the right facility and component, with an 87% automatic match rate and exception-based review. Scheduled collections reminders and an AI assistant keep follow-up consistent without dedicating staff to chasing every balance.
How inventory financing compares to related lines
If your book leans toward pure receivables, factoring covers debtor-confirmed invoice purchase, and broader asset-based lending covers multi-collateral facilities. Inventory financing sits between them: collateral-driven like ABL, with verification applied to the AR slice the way a factor would.
| Servicing task | Automated by Zolvo |
|---|
| Borrowing base and eligibility | Continuous monitoring with exception flags |
| AR component verification | Multi-channel debtor confirmation |
| Cash application | Confidence-scored matching, 87% auto-match |
| Collections | Scheduled reminders plus AI assistant |
| Funder and LP reporting | On-demand base, aging, and covenant reports |
Zolvo is SOC 2 Type II, GDPR aligned, and AES-256 encrypted, with strict tenant isolation. Most lenders go live in about 2 weeks on top of their existing stack. To see it on your portfolio, talk to our team.
Frequently asked questions
Does Zolvo verify inventory collateral?
No. Verification through debtor outreach applies to the AR component of a facility, where there are receivables and obligors to confirm. Raw inventory is monitored through the borrowing base and eligibility rules, not confirmed by debtor calls. We are deliberate about not claiming verification where it does not apply.
Will Zolvo replace our loan servicing system?
No. Zolvo augments systems like LoanPro, FactorSoft, QuickBooks, and bank feeds via Plaid. It automates post-funding servicing work such as monitoring, reconciliation, collections, and reporting. It does not originate, underwrite, or act as your system of record.
How fast can we go live?
Most lenders are live in about 2 weeks. Because Zolvo sits on top of your existing stack rather than replacing it, there is no rip-and-replace migration to schedule.