Commercial Lending Report
CLR
Showing 1–16 of 333 results
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Assess the risk – Lending to small businesses with overseas government customers
June / July 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 437
Abstract: Governments around the globe often buy goods and services from large businesses. But small- and medium-sized (SME) businesses earn a share of those expenditures as well. Is an SME that has foreign governments as customers a solid credit risk? This article suggests ways to evaluate the benefits and drawbacks of lending to businesses that conduct business overseas with foreign governments.
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Crooked schemes – Watch out for real estate fraud
June / July 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 727
Abstract: In a volatile and uncertain economy, unscrupulous real estate investors and other real estate-related borrowers might seek opportunities to fraudulently benefit from real estate transactions and loans. Lenders need to be on guard against any possible attempts to defraud them or their institutions. This article lists six real estate fraud schemes that lenders should know about as well as some red flags associated with fraudulent loan applications.
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Helping succession plans succeed
June / July 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 725
Abstract: When ownership of a family business changes, the business may struggle under the new owners until they find their footing. This article explains that a lender needs to evaluate the situation to determine whether the company has the capacity to remain financially healthy and keep the loan solvent. It notes that family business borrowers should have well-developed succession plans and other strategies to help prepare their businesses for any eventuality.
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When demand exceeds supply: What’s the lender’s role?
June / July 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 836
Abstract: When demand exceeds supply, trying to meet that demand can put a business under tremendous strain. This article explains when it might make sense to lend to a company with a significant backlog of orders that it currently lacks the capacity to fulfill. It offers tips to help a lender evaluate pent-up product or service demand and how it relates to a company’s creditworthiness. A sidebar highlights four warning signs that may indicate expansion to meet demand isn’t in a company’s best interests.
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Should you lend to an entrepreneur whose former business failed?
April / May 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 437
Abstract: The economic downturn resulting from the impact of the COVID-19 pandemic has caused many formerly profitable businesses to fail. Despite this, their owners may feel they want to get back into business again. This article offers four questions to ask a prospective borrower reentering the business world after a COVID-19-related business failure to help lenders evaluate whether the loan will be viable.
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Accounting estimates: Be aware of management blind spots
April / May 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 533
Abstract: A company’s management may make every effort to remain impartial and objective when making estimates for its financial statements. But errors of judgment are still possible. This article explains that it’s important for lenders to stay vigilant and ensure that the financial statements they receive from their borrowers are accurate and well founded. It notes that sorting through the layers of objective data and subjective assumptions until the full picture is clear will help lenders make well-informed decisions about their borrowers going forward.
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How to help your borrowers roll out a roll-up
April / May 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 565
Abstract: In these uncertain times, small businesses are seeking options that might give them a competitive advantage or keep them afloat. For some businesses, a roll-up is a viable solution. In a roll-up, a business acquires or merges with other similar businesses to increase efficiency and market share. This article points out that though roll-ups can sometimes be advantageous, lenders should help borrowers understand the ins and outs before they take such a momentous step.
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The debt generation – Lending to professionals on the path to partnership
April / May 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 902
Abstract: Many professionals are burdened with considerable student debt. Outstanding school loans can limit an individual’s ability to borrow additional funds for decades, and some professionals might find their paths to partnership blocked due to their inability to borrow their initial capital contribution (or “buy-in”). This article looks at how lenders should assess requests for such loans and suggests several steps they can take to ensure the loans are based on sound information.
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COVID-19 checkup – 4 questions to ask a recovering business
February / March 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 412
Abstract: Small and medium-sized businesses around the country have borne the brunt of the COVID-19 pandemic’s economic impact. As the downturn continues, they must find ways to right-size their operations. For some, this requires rethinking every aspect of the business. Lenders need to determine whether their borrowers are on track to adjust to the new operating environment — and thrive. This article suggests four questions to ask a borrower in this situation, such as whether the borrower’s future business model is realistic and whether the plan for implementing it makes sense.
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What can an AUP do for you?
February / March 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 671
Abstract: Lending decisions can be complex and it’s important to be able to pull out what’s relevant from the pile. Sometimes a full audit isn’t required. Depending on the circumstances, a lender may request an “agreed-upon procedures” (AUP) engagement to provide a more targeted and narrow view of the borrower’s financial health. This article explains the parameters of an AUP and offers an example to illustrate how it might be a good option for a lender seeking specific information.
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Recognize cash flow problems before it’s too late
February / March 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 721
Abstract: In light of the economic downturn caused by the COVID-19 pandemic, it’s more important than ever for lenders to focus their analyses of borrowers’ financial viability on cash. Sudden cash deficits can rapidly become chronic as businesses try to stay afloat in this uncertain economic environment. This article offers some places to look as lenders evaluate cash-poor borrowers — both within the statement of cash flows and beyond.
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Lending to a business with all-remote employees
February / March 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 825
Abstract: Technology allows employees to work from anywhere in the world — and since the COVID-19 pandemic began, this phenomenon has been increasing at a rapid pace. While the arrangement can be beneficial for employees and employers, it also has some downsides. This article suggests that to determine whether a business with remote employees is creditworthy, a lender needs to understand the pros and cons of a virtual workforce and how it may affect the business’s profitability. A sidebar explains how to determine if a worker is an independent contractor or an employee.
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Real estate as a “side gig” – Learn the ins and outs of lending to a novice real estate investor
Year End 2020
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 419
Abstract: With real estate prices approaching all-time highs in some areas, novice investors continue to enter the market. Lenders need to determine what’s driving these persons or groups to purchase real estate and what they hope to achieve. This article offers some guidance to help lenders evaluate novice real estate investors. It notes that lenders should scrutinize novice investors’ intentions, experience and education to identify those with the potential to excel in this challenging field.
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A closer look at the percentage-of-completion method
Year End 2020
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 641
Abstract: Clearly, lenders need ways to determine whether their borrowers are maintaining profitability. One way is to learn about the accounting methods they use, including how subjective their assumptions are when reporting their financial statements. Businesses that engage in long-term contracts frequently use the percentage-of-completion method to record contracts and revenues. This article looks at the ins and outs of this method, including what kinds of businesses typically use it and how it works.
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Where there’s smoke, there’s fire – Watch for the warning signs of fraud
Year End 2020
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 696
Abstract: As a result of the dramatic economic downturn caused by the COVID-19 pandemic, many businesses have been struggling to maintain profit margins, and many of their employees are under severe stress. In this confusing and difficult environment, the temptation to commit fraud may be harder to resist. This article points out that it’s imperative that lenders be aware of the potential threat to their borrowers’ bottom lines — possibly from people inside the company — and take proactive action to ensure strong financial oversight and due diligence.
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Lending to retrofit a business in response to COVID-19
Year End 2020
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 888
Abstract: To mitigate the risks associated with COVID-19, many businesses are taking steps to modify their facilities, so lenders need to understand how to evaluate loan requests for retrofitting projects. This article suggests several questions to ask prospective borrowers, such as what’s driving the need for investment and whether customers will notice the improvements, which will help lenders make more-informed lending decisions. A sidebar addresses how to evaluate a borrower’s previous construction management experience.