State of the Factoring Market — Yin & Yang in 2012

Working Capital Solutions’ Tom Siska provides both the yin and the yang for the factoring industry in 2012. The good news: Things will not be as bad as the Great Recession of 2008 and 2009. The bad news: Things will most likely get worse in 2012 before they get better, and no one knows when that will be.

Refinancings Drive ABL Pipeline Toward Record 2011 Issuance; 2012 Deal Flow Unclear

So far this year, asset-based lending (ABL) has been one for the record books — although the accompanying enthusiasm has been fairly muted. Looking forward to Q4/11 and into 2012, prospects for deal flow are in a bit of a fogbank in terms of where new deals will come from. And while it’s been a good year for ABL in terms of issuance, the rest of the year is unclear.

Federal Loan Survey — Increased Competition Spurs Continued Easing for C&I Loans

In July 2011, the Federal Reserve Board conducted a Senior Loan Officer Opinion Survey on bank lending practices over the past three months. Lenders from 55 U.S. banks continued to ease lending standards and most terms on all major types of loans other than loans secured by real estate.

A Brand-New Ball Game? What Stern v. Marshall Means for Lenders

What’s all this about Stern v. Marshall? Commentators and courts have scrambled to take the Supreme Court at its word, and attempt to limit the impact of the Stern decision. Whether these decisions will stand up under future Supreme Court review, if and when it occurs, is not so clear. Early decisions seem favorable, but it is likely that litigants emboldened by Stern—including those adverse to secured creditors—may probe the limits of bankruptcy court authority.

October 2011

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FinalCut: Bank Competition Spurs Asset-Based Loan Boom

ABF Journal illustrator, Jerry Gonzalez’ visual interpretation of a top-ranked abfjournal.com news story according to our visitors.

What Factors Expect… Great Expectations for 2011

The 2011 IFA Business Profile & Performance Survey was distributed to factoring industry members in January 2011. The purpose of this comprehensive study was to provide factoring industry members with information that could be used to benchmark their own individual performance. ABF Journal reviewed the 150-page report to provide readers with a sampling of the data along with commentary gleaned from the survey.

Using Emotional Intelligence in Distressed Assignments… Don’t Forget to Bring Your Golf Clubs

Working with distressed companies is challenging because of the constant need to take action amid uncertainty and stress. Emotional intelligence is a key tool to help navigate these situations and to develop flexible leadership styles that have the highest probability of success. Using emotional intelligence in these situations will improve leadership effectiveness and project outcomes, and will leave a long-lasting impression with clients and stakeholders.

Help Wanted! The Case for Restructuring the Franchise Business Model

Many restaurants operate within the franchisor/franchisee business model, and these relationships have become particularly strained in the current economy. When times are tough, franchisees typically respond by taking steps to improve operations and preserve the bottom line across stores. These changes can range from minor belt-tightening moves to closing one or more unprofitable locations. Unfortunately, many restaurant franchisees do not currently have the flexibility needed to make changes at the local level due to strict and complex franchise agreements.

Surviving the Long-Term Workout

As much as a troubled borrower and its lender might like to part ways, finding a new lender to take out the existing lender at par may be a difficult objective to accomplish. . . . Finding a way to successfully navigate these long-term workout situations could represent the difference between a costly write-off for the lender and a successful loan restructure with a rehabilitated borrower. Turnaround professionals are able to assist in these long-term workout situations by serving as a bridge between the two parties.