For decades, private equity investors have taken distressed assets through a process to divorce them from subordinate liens. An analogous, lender-initiated process (the UCC Article 9 restructuring) clears up the traditional bottleneck in bank-to-ABL transitions, ultimately leading to the next evolution of the take-out relationship.
MidCap Business Credit expanded its product offerings this year by launching MidCap Equipment Finance. Led by Saurin Shah, a co-founder of Nations Equipment Finance (now SLR Equipment Finance), the new business aims to help MidCap become a one-stop financing partner for the middle market.
Medium to large-cap businesses in the UK could be missing out on asset-based lending, a form of flexible financing popular in the United States that is comparatively neglected in the UK due to popular misconceptions.
In the current market, where sentiment can change on a dime due to everything from supply chain constraints to geopolitical upheaval, it’s essential to expect the unexpected, but that doesn’t mean we can actually see the twists coming.
Asset-based lending is a versatile and attractive option for companies experiencing everything from rapid growth to inconsistent earnings, which has only been magnified by the COVID-19 pandemic. Brent Hazzard, head of asset-based lending and asset finance at Citizens Bank, outlines why ABL matters now more than ever.
Offering asset-based lending can be one of the best ways for regional banks to maintain a competitive edge as more and more join forces to fend off the encroachment of “super power banks.”
Melinda Fricke joined Pacific Western Bank as a senior vice president and business development officer for its asset-based lending team. Fricke previously worked for Crestmark Bank, Summit Financial, Wells Fargo Business Credit, Fremont Financial Business Credit/FINOVA and First Community Financial.
Gibraltar Business Capital provided a growth-enabling credit facility to Clearon Corp., a manufacturer of chlorinated dry bleach used in an array of applications, including water treatment, disinfection and sanitization.