While a borrower’s offer to hand over the keys may be enticing, it is frequently the beginning of lengthy negotiations between the lenders over the terms and conditions of the proposed transfer, and the structure and governance of the acquiring entity.
Not only are U.S. vendors and manufacturers seeking international invoice factoring solutions, but so are sellers around the globe. Henry Grace explains how the impact of the Great Recession caused U.S. Financial to shift its emphasis away from more traditional forms of financing to using invoice factoring as a way to facilitate international trade for its customers.
Deloitte CRG’s Rudy Morando and Sugi Hadiwijaya give insight into managing a distressed company in a liquidity crisis. Accepting the challenge and becoming a leader for change are important steps towards company rehabilitation. They note that having the right mindset and tools to address the challenge can be the difference between a successful recovery and a failed business.
With a year under its belt, Revere Finance is carving a place for itself in the ABL world. No strangers to secured lending, the bank’s head executives worked for years at sister entity and distressed asset management company PPL Group. Now, Revere is delving deeper into providing ABL solutions for small- and middle-market businesses nationwide — taking risks where other banks and lenders fear to tread.
Since PO funding is transactional and specific to end customer purchase orders, a company is able to access additional capital to sustain incremental growth or seasonal sales even when its balance sheet won’t support additional borrowings from a traditional lender.
Over the past year, the competitive environment in the asset-based lending industry has reached a fever pitch. Competition for a limited number of deals has forced lenders to offer diminished rates to keep clients. In order to offer lower-cost deals, some lenders have decreased the frequency of regular appraisals, often to their own detriment in the long term.
Inez Markovich gives readers an overview on the OCC’s recently issued handbook on asset-based lending. She notes that financial institutions pursuing ABL transactions need to keep abreast of the current examination principles and, if necessary, strengthen internal procedures designed to improve the risk management of their ABL portfolios.
Rosenberg and Fecci Consulting’s Steven M. Rosenberg spoke with Joe Amorin, a seasoned field examination manager who retired from his post at JPMorgan Chase in 2011, to gain insight into the field exam profession, how it benefits lenders and borrowers, and how it has evolved for the better over the years.
Howard Brod Brownstein provides commentary on this year’s Seventh Annual Education & Networking Conference where bankruptcy court judges, asset-based lenders and attorneys shared their views on restructuring alternatives, lending in today’s environment and recent bankruptcy cases. This was the largest Villanova conference to date with a sell-out crowd of active participants.