Category: Current Issue

View from the Bench: One of the Nation’s Top Bankruptcy Judges Analyzes the Chapter 11 Landscape

Chapter 11 in 2017 seemed to be a paradox. On one hand, every day seemed to bring news of a national retailer filing for protection. On the other hand, the American Bankruptcy Institute, which monitors Chapter 11 commercial filings, contends that there were fewer filings because of the high cost. The Honorable Michael B. Kaplan, U.S. Bankruptcy Judge for the District of New Jersey, provides unvarnished answers to ABF Journal’s questions about the state of Chapter 11 today.

Creating the Lender Finance Niche: Wells Fargo’s Andrea Petro Looks Back at a Career Filled with Accomplishments

In November, Andrea Petro stepped down as executive vice president and division head of Wells Fargo Capital Finance’s Lender Finance Group — a niche lending product she created and developed more than 20 years ago. As she prepares to move on to the next phase of her life, Petro spoke with ABF Journal editor Nadine Bonner, touching on the highlights of her career and recalling how she thrived on the challenge of being a woman in a man’s business world.

Lenders Beware: Potential Red Flags When Financing Franchises

Franchising is becoming a popular option for a wide range of businesses. Franchising provides brand recognition for health clubs, bakeries and, of course, restaurants and fast food outlets. As the business model expands, franchisors often require third-party financing. Leonard Vines and Beata Krakus point out the red flags lenders should watch for before agreeing to finance a franchise.

Filling the Void: TradeCap Partners Offers Middle Market Borrowers a Complete Financial Solution

After working together for almost a decade at King Trade Capital, Bryan Ballowe and Clinton Stanton launched TradeCap Partners in July. The pair spoke to ABF Journal Editor Nadine Bonner and explained how they are working to partner with other lenders to provide lower middle market borrowers with complete financing solutions.

Why Is Asset-Based Lending So Expensive? Comparing Cost Structures for ABL and C&I Loans

There is a common belief, especially among business borrowers, private equity funds and M&A sponsors, that inefficiencies leading to predatory pricing exist in the small-cap and lower middle market business lending space. That assumption may be incorrect because the ABL cost structure is very different in comparison to inexpensive bank lending. By utilizing a new, more optimized funding structure, ABL firms may be able to greatly reduce their cost of capital.

Opportunities and Challenges: Asset-Based Lending in 2018

The digital world has transformed every aspect of our lives. Some of us still remember pasting photographs into albums and racing to answer the telephone mounted on the wall — picking up the receiver without knowing who was on the other end of the line. Technology has changed asset-based lending in ways no one could have predicted 20 years ago. ABF Journal contributor Hugh Larratt-Smith explores the evolving ABL landscape and evaluates the impact these changes will have in 2018.

Robust Results: Upswing Leaves ABL Lenders Optimistic for 2018

Despite political turbulence and Mother Nature running amuck, ABL lenders saw an upswing in business in 2017 after two flat years. ABF Journal contributor Lisa Miller spoke with five ABL executives who described a robust year filled with new partnerships and business opportunities and an optimistic outlook for 2018.