September 2002
Specialty Lending SupplementIf you are interested in ordering any of the articles from this issue of ABF Journal, please visit the Article Directory. The Article Directory is a comprehensive listing of all ABF Journal print articles. It also includes a reprint order form.

Service Providers: How to Outsource for Success
By Joseph A. Heim, CPA

Today’s asset-based lending market requires lenders to “wear many hats”- from finding new usiness opportunities and due diligence to underwriting and portfolio management. To be successful in this environment, lenders should concentrate on core competencies and seek support for processes such as collateral field examinations and capital asset appraisals. (Ref # ABL047)

Critical Vendors Face High Noon in In re CoServ
By Patrick M. Jones

Critical Vendors and the debtors’ motions that create them may have met their match earlier this year in a Texas-style showdown
in In re CoServ, L.L.C. While debtors and their critical vendors may have been first on the draw, the CoServ court’s response
could eventually prove fatal to such motions in the future. (Ref # ABL048)

Mezzanine Finance Can Be Critical Capital
By Marc A. Reich

Mezzanine finance has long been a component in creating the optional capital structure for middle-market companies, but its
importance has increased dramatically within the last two years. As banks tighten underwriting criteria due to regulatory
pressure and the softening economy, demand for mezzanine finance has been on the rise. (Ref # ABL049)

Auction Sales: Disposing of Assets While Maximizing Their Value
By Mark J. Weitz

When a company is rescaling its business or seeking to liquidate, one of the most cost-effective means of disposing of unwanted
or idle assets while maximizing overall value is an auction sale. The following article offers valuable insight into organizing
and conducting a successful auction. (Ref # ABL050)

Service Receivables —The Softer Side of Collateral
By James A. Barry

Although asset-based lenders have traditionally avoided funding service receivables in the past, competition now dictates that
such transactions be considered. When funding these transactions, lenders and field examiners should acquaint themselves with
the revenue recognition practices of the borrower. (Ref # ABL051)

Dispelling the Myths About Private Lending
By Kevin S. Clark

A prevalent misconception regarding private lending is that it is a valid alternative to conventional lending only in economic
downturns or when sources of capital have dried up. In reality, raising capital from private lenders can be simpler and faster
than capital from institutional lenders or the public markets. (Ref # ABL052)