A new generation of appraisers has emerged to meet the growing need of ABLs to value collateral and execute on transactions, with growing access to actionable data, along with associated offerings that mitigate risk and unleash value in a constricted marketplace.
Restoring Disciplined Appraisals and Oversight: Why the Need for Diligence is Essential to Minimizing Risk
Over the past year, the competitive environment in the asset-based lending industry has reached a fever pitch. Competition for a limited number of deals has forced lenders to offer diminished rates to keep clients. In order to offer lower-cost deals, some lenders have decreased the frequency of regular appraisals, often to their own detriment in the long term.
Michael McGrail, managing director of Tiger Group, says the ABL sector has enjoyed a market in which appraisals continue to be safe and accurate, in good times and bad.
As e-commerce evolves as a key part of the retail market, ABLs that have a strong understanding of the online model will have no shortage of opportunities to expand their loan portfolios.
With so much liquidity in the marketplace and the need to deploy it, banks and other lenders are entering the asset-based lending marketplace. ABF Journal speaks with five ABL leaders to get their insights on today’s competitive lending environment and their respective strategies to stimulate deal flow and to differentiate their institutions on such a crowded playing field.
Although the Chapter 11 bankruptcy of General Motors has all but vanished from the headlines, it is still making waves with an interesting and deceptively simple decision on the valuation of a secured creditor’s collateral.
The shift to digital content delivery of video games will have a significant impact on the value of physical media such as cartridges and consoles. Tiger Group’s Michael McGrail’s advice to secured lenders in the space includes closely monitoring trends and key metrics, as well as regularly reviewing collateral valuation.
The food industry is evolving in fascinating ways. From the rise of farmers markets and organic-only “foodies,” to the incessant attacks on sugar and trans fat, needs and preferences are changing all the time and winners and losers are bound to emerge. Appraisers, in particular, will have to make sure their analytics are as thorough and as up-to-date as possible.
The year 2011 began on a hopeful note with signals that the U.S. economy was showing signs of strength in 2010. This, after a dismal and disappointing 2009. In the following article, Great America’s Michael Petruski returns to review the first three quarters of 2011 with a look at industries and markets where asset-based loans are directly affect by change and cyclicality.