July/August 2004
ABF Executive Roundtable:
Gaining Momentum in a Reviving Economy

What’s In Store… The Up’s & Down’s of Retail Finance
By Andrew H. Moser

In order to be successful together, retailers and lenders alike must each manage change rather than react to it, by continuously analyzing data and making timely decisions. The fast, fluid nature of retail is here to stay, and only those who can grasp its nature and anticipate change will be successful. (Ref # RETAIL007)

Cross-Border ABL Market: Multinational Platforms Support Expanding Needs
By Paul De Domenico

The developing capabilities of lenders – as well as increasing acceptance by borrowers – are creating new opportunities for the use of asset-based lending on a multinational basis. The ability of lenders to serve a whole host of financing needs now evident across the global marketplace will be a highly salient factor in the further development and use of the approach. (Ref # INTL021)

Have No Fear… A Borrower’s Bankruptcy Is Not the End of the World Part I – Preparation
By Trent L. Rosenthal

With proper planning from the inception of the relationship and appropriate vigilance, an asset-based lender need not fear a borrower’s bankruptcy. Rather than viewing it as the end of the world, the lender should instead concentrate on obtaining the benefits that bankruptcy might offer. (Ref # BANK008)

Then & Now… Background Investigations In the ABL World
By Jerome S. Oldham

“Trust, but verify.” Perhaps the words of the late President Ronald Reagan best summarize a prudent approach to background investigations in the asset-based lending industry. The following article discusses how and why the process of this important aspect of due diligence has evolved over the years. (Ref # FRD008)

ABF Executive Roundtable: Gaining Momentum in a Reviving Economy
By Kevin Riordan

What a difference a year makes… This was perhaps the most prevalent sentiment expressed in ABF Journal’s recent roundtable discussion with top executives of 20 asset-based lending firms nationwide. Their outlook for the economic recovery? It’s real – and asset-based lenders are poised to exploit opportunities despite a dramatically evolving competitive landscape. (Ref # IND050, MYS002)

As the World Turns… ABL Emerges In the European Union
By Paul Hancock

Compared to the U.S., the European ABL market is smaller, less mature, and considerably more complex from a regulatory perspective. While it’s unlikely that the scale of the U.S. ABL market can be replicated in Europe, the opportunities in this burgeoning segment of finance – for both lenders and borrowers – are substantial. (Ref # INTL020)

Attention ABLs…
Are You Undervaluing Your Borrower’s Greatest Assets?
By Donald E. Anders

To understand the value of a company’s assets, whether investing in its equity or extending credit or financing, one has to acknowledge that there is a new world order of business required in assessing the true worth of the business and its underlying assets. That’s why its critical for lenders and other corporate financial executives to work with professionals who can recognize intangible assets, define and research them and know how they work synergistically with other assets. (Ref # APP019)

Columns

A PROFILE OF SUCCESS
A Profile of Success: A Most Valuable Player Building A Winning Team
A Profile of Bill Mayer, President & COO, Wells Fargo Retail Finance

Like the Larry Brown of lending, Bill Mayer, president and COO of Wells Fargo Retail Finance, has worked with his share of teams in his day, moving from city to city, building and re-building businesses. And, it’s no surprise that this two-sport athlete at Penn State University is a man who might know a thing or two about teams and what makes them successful. (Ref # EXEC019)

LEGAL EYES
Seventh Circuit Rejects the Doctrine of Necessity
By Mark G. Douglas

“First day” motions accompanying a Chapter 11 debtor’s bankruptcy petition routinely include an application for authority to pay the pre-bankruptcy claims of vendors and other creditors without whom the debtor could not continue to operate its business. Many bankruptcy judges grant such “critical vendor” motions by relying upon a principle commonly referred to as the “necessity of payment” rule or “the doctrine of necessity.” (Ref # LGL033)

TURNAROUND CORNER
Influencing the Outcome: Helping Turnaround Clients Communicate Effectively
By Ira Gerstein and Bryan A. Tannenbaum

One of the biggest issues in a successful turnaround is not so much a grudging, letter-of-the-law compliance with information requirements, but a genuine desire to make sure people involved are kept informed. Through effective communication, it is possible to improve the chances that people with the power to influence the outcome, will be willing to help the company succeed. (Ref # TM026)

FACTORING FOCUS
Gaining Steam…The State of Non-Traditional Factoring
By Thomas G. Siska

Generally, a poor economy usually provided factors with a double-whammy: more leads as the financial condition of borrowers deteriorates and less indirect competition as banks and ABLs tightened their credit criteria in reaction to mounting losses. The recession of 2001-2003 seemingly provided neither benefit for the individual factor. In hindsight, the reason is clear. (Ref # FAC038)