Category: 2010

Tomorrow Will Look A Lot Like Today

As we begin a new year, Stevan Buxbaum urges secured lenders to take advantage of the great opportunities that exist in tumultuous times. But, he advises, such opportunities will only pan out if approached with discipline, diligence and perhaps most importantly, the realism that was lacking in the days of irrational exuberance.

Detecting & Derailing Fraud

When considering your organization’s approach to detecting, eliminating and preventing fraud, trust your intuition and suspicions, and take a hard look into the facts surrounding any gut feeling you have. Put practical procedures in place, then monitor the environment in high-risk areas. When it comes to fraud, it’s not a matter of “if” it will happen, but rather, of how well you are prepared when it does.

At TD Bank, An Industry Veteran Finds the Right Fit

For Barry Kastner it’s always been a matter of trusting his instincts and striking the right balance. And it’s no surprise that the 33-year veteran of Congress Financial and its successor, Wachovia Capital Finance, assimilated the qualities of strong credit discipline and a customer-centric approach to find himself in the top ABL spot at America’s ‘most convenient bank.’

The True Face of Dilution (Part 1 of 3)

Field examiners may spend a considerable time scrubbing a borrower’s trade accounts receivable (A/R). Often the resulting ineligibles proposed are met with the following question “Isn’t this all covered by dilution?” Knowing the answer to the question is critical to ensuring that the borrowing base formula adequately protects an asset-based lender.

Do Quick-and-Easy Section 363 Sales Always Yield the Best Return on Collateral?

Because legal fees and other costs can stack up during a lengthy Chapter 11 reorganization, some asset-based lenders might welcome the trend toward §363 sales, reasoning that quicker sales ultimately will translate into maximum return on collateral. In reality, however, §363 is anything but a one-size-fits-all solution.

Balancing Opportunity and Risk

This year promises to be among the most challenging in memory for asset-based lenders. More than at any other time, lenders will face competing pressures to open up the spigot to meet pent up market demand for financing, while simultaneously confronting internal and external pressures to limit exposure and risk. Adding to the impetus is the recent White House initiative to leverage banks into aiding small businesses through increased lending.