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11sep

September 2011

ABL Borrowers' Issue
Vol. 9 No. 6
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FEATURES

Inevitable Realities— The More Things Change… - Stability and consistency remain key to asset-based lending’s evolution as a primary financing option, even allowing the industry to emerge from the Great Recession perhaps better positioned for growth than ever before. Moreover, experience and flexibility will help secured lenders to navigate a changing — and shrinking — global landscape as technology and communication tools continue to make the world a smaller place.
Putting Their Heads Together… CIT Corporate Finance Executives Discuss the State of ABL, Cash-Flow Lending - To gain their perspective on the current state of the asset-based and cash-flow lending markets, ABF Journal tapped the collective wisdom of Pete Connolly and Jim Hudak, co-heads of CIT’s Corporate Finance group. The two discuss their outlook for middle-market borrowers, key borrower sectors and the lessons learned during the Great Recession.
Growth Through Expansion: Lessons Learned and Pitfalls to Avoid - In today’s economic environment, maintaining market share and revenue are oftentimes a daunting challenge. Growing revenue — even more so. If you conclude that the acquisition route is a good mechanism to achieve this growth, proceed cautiously! With the proper planning, third-party involvement, due diligence and integration, you should be able to make it a successful effort.
Beyond the Misconceptions… Factoring as a Dynamic Tool for Financing and Growth - Factoring is sometimes looked upon as “high-priced borrowing” and as an indication that companies that use it are financially weak. In the following article, Neville Grusd at Merchant Factors sets forth to dispel the common myths and misconceptions about factoring. On the contrary, he notes, factory can be a dynamic tool to enhance business and support growth.
What Every Finance Professional and CFO Needs to Know Now and Into 2012 - Now that we have all lived through the credit crisis and are still around to talk about it, where do we go from here? What do finance professionals and CFOs need to know in order to navigate the U.S. financing and capital markets now and in 2012? Monroe Capital’s Ted Koenig addresses three important areas of concern going forward.
Myths, Legends and Old Wives’ Tales — Slaying the Inventory Dragon - Often the first signs of a company’s distress are not seen in the board room, but the warehouse, where too much of the wrong stock builds up to crisis levels. This article describes some of the most persistent myths that muddle the world of inventory, how they damage a business and how a few hard facts can unleash a lot of value.
Finding the Right Mix of Financing and Flexibility With Hybrid Loans - While traditional financing options are well suited to most companies, they don’t fit the needs of every business. As a result, lenders are increasingly providing financial products that offer new levels of flexibility. This rising tide of creative financing vehicles is giving companies more options. The advantage to businesses is clear: They can enhance their working and growth capital to fuel business plans and help maintain a competitive edge. Enter the hybrid loan.
Healthy or Unhealthy: Defining the Risk Assessment Environment - The environments in which risk analysis takes place can be healthy or unhealthy. The latter is generally the case when corporate culture becomes the controlling factor in all decision making, rejecting objective analysis from outside the bubble and requiring the same questionable risk framework even in the face of new unknown factors. No one wants to make mistakes, but those may well be inevitable unless analysis is undertaken with a healthy respect for the unknown of new markets.
ABL & Capital Markets Issuances — The State of Things - When it comes to capital markets issuance, ABF Journal turned to Wells Fargo Capital Finance’s Dorothy M. Killeen to explain where asset-based loans fit in the grand scheme of things. In the following Q&A, Killeen explains the differentiating characteristics of various ABL combinations.

FROM ALL FACETS

TURNAROUND CORNER

Strategic Planning Mishaps to Avoid (Part 2 of 2) - In Part 1 of this two-part article, Ken Naglewski of Seabiscuit Partners rendered a definition of strategy, identified the core elements of the strategic planning process and provided a perspective on strategic planning best practices. In Part 2, Naglewski will provide insights into why strategies fail and will highlight potential strategic planning mishaps CEOs need to recognize and avoid.

FACTORING FOCUS

Industry Outlook: Factoring Withstands the Test of Time - With all the economic uncertainty in the market and traditional credit struggling to return to normal levels, one thing is certain: Factoring will remain a solution to help small- and mid-sized businesses with their cash needs. Factoring has a long history in the world of credit and has stood the test of time when it comes to financing a growing business.

LEGAL EYES

Southern District Establishes Standards for ‘Good Faith’ Participation in Court-Ordered Mediation: Part II - The A.T. Reynolds & Sons, Inc. decision reverses the bankruptcy court’s order holding the secured lender in the underlying bankruptcy proceeding, and its counsel, in contempt for failing to mediate in good faith and imposing sanctions upon them. The decision not only vindicates the lender and its counsel for its “no pay” position taken at the mediation, but also articulates a clear and objective standard for parties’ future “good faith” participation in a court-ordered mediation. This is the conclusion of this two-part article.

FINALCUT 

FinalCut: Borders’ Final Chapter — Once Mighty, Now Low - ABF Journal illustrator, Jerry Gonzalez’ visual interpretation of a top-ranked abfjournal.com news story according to our visitors.

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