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April 2004

Vol. 2 No. 4
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ABF Journal, April 2004
April 2004

Adding Flavor and Variety

The Evolving Face of Factoring
By Harvey S. Gross

The variety and flexibility of financing receivables continues to evolve. With continuing consolidation of the factoring industry, banking, and asset-based lenders, new opportunities to fill service voids will likely broaden the spectrum of funding opportunities.

(Ref # FAC034)Non-Traditional Factors – Slicing & Dicing Their Way To Success
By Thomas G. Siska

While one end of the factoring market continues to consolidate, as witnessed by the recent exits of some long-standing players in the industry, the other end is now facing its point of saturation. Over the last few years, many non-traditional factors have seen their margins erode and credit
quality weaken. However, there are areas where factors can focus to come out ahead.
(Ref # FAC035)

Shark Infested Waters… Searches Under Revised Article 9
By Michael Ullman

Under Revised Article 9, secured parties must recognize that different tests apply to whether one is searching for UCC financing statement liens or federal tax liens. When it comes to federal tax liens – a word to the wise – expand your searches, especially at the inception of the factoring or asset-based lending relationship.
(Ref # LGL030)

Orderly Liquidations: Higher Prices, Faster Sales
By Edward Castagna

Whether selling off end-of-lease stockpiles, returns, repossessions, or equipment recovered from bankruptcies, orderly liquidations offer several compelling advantages over public auctions. Combine orderly liquidations with the reach of the Internet, and they become powerful and convenient tools for remarketing equipment.

(Ref # APP016)

A Profile of Success: CIT Commercial Services…An Insider’s Glimpse
A Profile of CIT Commercial Services

In 2003, CIT Commercial Services acquired a substantial portion of the U.S.-based factoring assets of GE Commercial Services and substantially all of the U.S.-based factoring assets of HSBC Bank. The result? CIT Commercial Services is one of the nation’s leading providers of factoring services. In a break with our traditional format of profiling individual industry leaders, ABF Journal thought it would be interesting to focus on this factoring powerhouse.

(Ref # EXEC015)

Preference Actions, Fools & Their Money -Part I
By Patrick M. Jones and John T. Gregg

“Fool me once, shame on you; fool me twice, shame on me.” This old saying, which can be traced back to 1786, probably was not intended to describe the frustration felt by creditors that become targets of “preference actions,” but it most assuredly does.

(Ref # LGL029)

Merrill Lynch & General Cable: A Total Financial Solution
By Mark Gertzof and Tamara Roehm

Faced with a major decline in the overall wire and cable industry due to the global recession, and the desire to restructure its bank debt, General Cable Corporation consulted Merrill Lynch for advice in mid-2003. After reviewing various options, the Company selected Merrill Lynch and UBS Securities LLC to lead a total recapitalization of General Cable’s balance sheet, involving four separate transactions that were executed simultaneously and collectively raised more than $675 million in new capital.

(Ref # DLS011)

Getting Things Done…Shifting the Balance of Power – Part I
By Tony Natale

Frequently in turnaround situations, lenders are concerned whether or not the consultant will have the ability to effectively impact the borrower’s actions. Therefore in the referral-building phase, the consultant should seek to answer the lender’s question, “Can the consulting team get the job done?” Part I of this article addresses the sources of a consultant’s power in influencing the borrower’s actions, and Part II will cover how power shifts during the course of a consulting engagement.

(Ref # TM024)

Attention Financial Advisors: Safe Driving Tips Can Expand Your Core Business
By Tyler V. Grady

Gaining a competitive edge in today’s market can be as simple as adopting the ABC’s of safe driving. Awareness of the big picture, be visible and create your own space. Selling accounts receivable financing to your clients and prospects may be the right vehicle to gain that edge.

(Ref # FAC036)

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