Alternative forms of financing such as A/R factoring are flexible enough to focus on a company’s future potential and growth, as well as its history. Leigh Lones, CEO of Bibby Financial Services, recounts how Bibby crossed paths with Naadam Cashmere and why the factor took a chance on financing a unique and socially conscious business.
Lenders have historically shied away from lending to restaurants for a variety of reasons, with the high restaurant failure rate ranking top among concerns. But as the restaurant industry is poised to experience its fifth consecutive year of growth, lenders should consider adding restaurants to their portfolios. Anderson Kill Attorney Inez M. Markovich discusses four potential pitfalls that jeopardize the priority of a lender’s security interest in a restaurant’s assets.
Located strategically at the convergence point between macroeconomic activity and microeconomic need, commercial finance and ABL stand at key junctures in the life of smaller businesses. Jeffrey Sweeney, CEO at US Capital Partners, discusses how a changing landscape in China is validating ABL’s central role at the many intersections of business.
Ravinia Capital Founder Tom Goldblatt provides insight into selling a troubled company, explaining why a series of thoughtful considerations must be put forth and followed before there can be any realistic expectation of achieving a “best possible” outcome.
A byproduct of the 2008 financial crisis, Comprehensive Capital Analysis and Review regulations grew out of the federal government’s need to safeguard the nation’s banking system from another financial collapse. AxiomSL SVP Rob Lee explains the fundamental requirements of CCAR, noting that institutional stress tests and data collections are here to stay.
Kenneth S. Frieze, CEO of Gordon Brothers Group, examines risk factors associated with underwriting new loans and recovering on those in distress. He notes that “getting it right out of the gate” requires a deep understanding of the trading value of assets, and asserts that nothing can substitute for disposition experience.
Nutter McClennen & Fish attorneys Philip R. Rosenblatt and John G. Loughnane discuss the uncertainty lenders may face when involved in a unitranche transaction. Since the unitranche model has not been thoroughly tested in court, they caution that when times get tough, lender parties will need the benefit of a well-crafted agreement—one that helps reach a solution instead of inadvertently accelerating a troubled situation.
A strengthening labor force leading to stronger consumer spending and gradual housing market gains, combined with a tempered tightening of Fed monetary policy to preserve the burgeoning economic expansion mean the pieces are in place for the economy to grow by 2.9% in 2015, according to a forecast by James Marple, TD Bank Group senior economist.
Though similar themes of high liquidity, increased competition and decreased spreads continue to echo in the market, five industry luminaries share their thoughts with longtime ABF Journal contributor Lisa Miller on new money opportunities, what it takes to win a deal today, when interest rates will rise — and more.
Competition for new deals remains high despite a shift of excess capacity to the commercial finance sector. Donald Barrick, president of RMP Capital Corp. stresses that the same cornerstones of winning a customer remain true from pre-recession times, including keeping abreast of industry developments. Barrick outlines key trends to watch in various sectors.