Introducing PledgeCheck: A New Standard for Collateral Integrity

The Problem: Trust Without Verification

Asset-backed finance depends on data integrity. Yet most lenders still rely on borrower attestations and sampling-based reviews to confirm collateral ownership. These processes are manual, fragmented, and slow.

Borrowers often manage multiple facilities, each with unique eligibility rules and reporting templates. Trying to reconcile that complexity through emails and spreadsheets leaves room for errors, and in some cases, fraud.

Across a web of trustees, custodians, and servicers, no one has full visibility into whether an asset has been pledged once or multiple times. Until now, there’s been no independent system to confirm that every reported asset in a collateral pool is unique.

How PledgeCheck Works: Programmatic Proof of Collateral Integrity

PledgeCheck creates a single, verifiable source of truth. Borrowers upload their master data tape and facility-level reports into Setpoint, and the platform runs a series of checks to confirm:

• Uniqueness: Each asset ID appears only once across all active facilities.

• Data Integrity: Key fields like VIN, address, or company name are consistent across every report.

• Completeness: Collections and loan performance data match reported values.

• Single Record: Every pledged asset exists in the borrower’s system of record, verified against the master file.

If any anomalies are found - duplicate IDs, missing data, or inconsistencies - the system flags them for review before certification.

The result is a real-time certification of collateral integrity that both borrower and lender can rely on.

What It Means for Borrowers

For borrowers, PledgeCheck simplifies compliance and strengthens lender confidence, improving access to capital.

• Less operational drain: Automated integrity checks replace manual reviews and back-and-forth clarifications.

• Stronger reputation: Independent verification demonstrates operational discipline and transparency - traits that earn a reputation capital providers can trust.

• Audit-ready records: Documented and built-in data validations flag inconsistencies before reports go out, reducing reconciliation issues and compliance escalations.

By running data through PledgeCheck, borrowers show capital providers a clean, defensible record of every asset they finance: proof that they can scale responsibly and earn continued access to liquidity.

What It Means for Capital Providers

For capital providers, PledgeCheck provides an independent layer of protection that existing covenants and warranties cannot.

• Verified collateral integrity: Get concrete proof that pledged assets haven’t been duplicated or misreported across facilities.

• Real-time visibility: Certification updates as new data is uploaded, not months later.

• Reduced risk: Prevent double pledging and reporting errors before they impact performance.

Instead of relying on borrower attestations, PledgeCheck gives capital providers a real-time, verifiable foundation of trust, allowing them to deploy capital faster and with greater certainty.

Setting a New Market Standard

Over 250 lenders and originators already rely on Setpoint to automate funding operations and manage risk across $50 billion in annual transactions. PledgeCheck extends that same trusted infrastructure to the broader market, giving everyone a shared certification for collateral integrity.

With PledgeCheck, the market no longer has to choose between speed and security. Borrowers can move faster, lenders can fund with confidence, and the entire asset-backed finance ecosystem becomes more transparent and resilient.

Request a Demo to see PledgeCheck verify data in real-time.