ABFJ March 2017 Cover

March 2017

Specialty Lending
Vol. 15 No. 2
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COVER STORY

Art as Collateral: Challenges for the Asset-Based Lender - Fine art as collateral presents unique challenges for asset-based lenders. Title and authenticity are just two of the complex issues that make art loans more of a risk. Stephen Brodie represents lenders who have ventured into the world of fine art and suggests ways that lenders can protect themselves.

FEATURES

As Baby Boomers Retire, ESOPs Help Employees Take Over the Businesses - Building a successful business, whether it’s a factory, a service company or a retail outlet, is a lifetime accomplishment. But there comes a time when even a successful business owner wants to step down and retire. Creating an Employee Stock Ownership Plan (ESOP) can protect a business’s legacy and its longtime employees. This is how it’s done.
It’s All in a Name: Brands and Trademarks as Loan Collateral - Branding has become the buzz word of the 21st century for marketers promoting their products. But brands themselves have value and can be used as collateral when structuring a loan. Hugh Larratt-Smith explains how these loans are created and explores the successes and the pitfalls of lending against brands.
Church Lending: The Boom, the Bust and the Future - For more than 100 years, Ziegler Investment Bank has specialized in lending to churches, schools and nonprofit organizations. Managing Director Scott Rolfs explains how lending to churches differs from lending to other businesses, although it is not immune to the economic turbulence that has rocked the post-Great Recession lending world.
Why Commercial Lenders Must Embrace Fintech Now - It is safe to say that over the past 10 years technology has completely transformed everything from the way we read to the way we shop. The lending business is not immune to technology’s disruption. G. Scott Paterson explains how embracing the fintech revolution will put lenders in a stronger position with their customers.
Franchise Financing as Easy as ApplePie - Owning a franchise offers an entrepreneur the opportunity to run a business with the safety net of an established brand to provide a familiar product and a playbook to succeed. But coming up with the initial funding to cover the start-up costs can be a challenge. Denise Thomas started ApplePie Capital in 2014 to help potential franchisees. Thomas explains how she developed the concept and shares her thoughts on being a woman in a male-dominated industry.

TURNAROUND CORNER

Corporate Transformation is the New Normal: But Are You Going About it in the Right Way? - In the early stages, corporate turnarounds can resemble a hospital emergency room, according to Malcolm McKenzie. Performing triage may be the only way to save the patient. He offers eight practical tips to execute a successful turnaround.

SPECIALTY LENDING

New Lending Structures Combat the Rise of Daily Debit Loans: The ABL Industry Strikes Back - Online lenders have made it quick and easy for business borrowers to access cash in a crunch. But these fintech lenders rely on algorithms and business plans, not bothering to check to see if the borrower has existing loans in place. If the client runs into difficulties, this can create headaches for the senior lender. Charlie Perer suggests that second lien lenders provide new products to enable borrowers to get a quick influx of cash controlled by the senior lender.

LEGAL LINES

Chapter 7 Policy Maker: How Creditors Can Benefit from Chapter 7 Proceedings - Creditors often refrain from actively participating in Chapter 7 bankruptcy proceedings. Jack O’Connor interviews his colleague, Michael Traison, who represented the creditors in a Chapter 7 case and was able to recoup a significant amount for the estate in a precedent-setting decision.

FINAL CUT

Scargo Hill Launches to Provide Lower Middle Market Financing - Andy Moser is back with a team of ABL experts at Scargo Hill Capital. ABF Journal illustrator Jerry Gonzalez shares the celebration.

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