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.
Law Firm Financing on the Stand: Controversial Financing Enables Firms to Withstand Long-Term Litigation
Litigation involving hundreds or thousands of clients can take years to resolve, putting a financial strain on law firms working on a contingency basis. While banks are willing to provide loans based on a firm’s hard assets, law firm finance companies are willing to lend based on anticipated fees, account receivables and other assets. Attorney Kelly Anthony explains this new type of specialty lending and defends it against industry detractors.
A structured capital strategy, combining debt and equity securities, can give smaller businesses more flexibility in the current lending environment where traditional bank finance remains constrained and restrictive. David Bainbridge explains how this approach can spur growth for middle market companies.
Factoring — selling invoices for cash to obtain working capital — can provide a business with much-needed liquidity to spur growth. Robinn Mikalic has spent 18 years in the factoring business. A passionate factoring advocate, she uses real life examples to illustrate how factoring works and how businesses can best use it to generate cash and promote growth.
As credit tightens, middle market companies are being squeezed from all sides. Lenders offering short term second lien or stretch loans can work with ABL lenders to help these companies stay liquid.
Patrick Dalton examines the changing role of alternative lenders in the rapidly evolving lending landscape. Due to regulatory constraints, he says it is often in the best interest of a borrower — and a senior lender — to form a strategic partnership with an alternative lender that has institutional knowledge of various asset classes.