Vol. 15, No. 2
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.
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.
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.
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.
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.
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.
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.
Franchising offers financial service entrepreneurs the same benefits that food outlets, hotels and car repair shops currently enjoy. For an upfront investment, the franchisee receives support from the franchisor, association with a trusted brand and expanded business opportunities. David Banfield explains how factors and invoice discounters now use franchises, rather than branches, to provide clients with a local presence.
Providing Creative Lending Solutions: Vanishing Funding in the Midstream Diamond and Jewelry Industry
The hazards of lending to the midstream diamond and jewelry industry — cutters and polishers, traders, wholesalers and manufacturers — have caused banks that traditionally provided funding to exit the industry. Tom Scotti proposes changes that specialty lenders can enact to provide financing for this
segment in a holistic way that benefits all parties.