Commercial Lending Report
Showing 289–304 of 345 results
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Retail e-tales – What to consider when lending to online retailers
November / December 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 423
Abstract: Retailers top the list of borrowers hardest hit by the downturn. But online retail could be a bright spot, as recession-spooked consumers search for bargains and convenience. When lending to e-tailers, consider such factors as up-to-date search functions and privacy features, detailed product information and reliable customer reviews; how quickly borrowers modify promotions based on customer buying habits; and possible partnerships with brick-and-mortar stores.
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CPA services – Think outside of the accounting/tax box
November / December 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 660
Abstract: To get the most from outside financial experts, lenders should think beyond the stereotypical duties of audits and tax return preparation. Examples show how a CPA can help with turnaround efforts, conduct on-site inspections of borrowers’ facilities, investigate fraud, value inventory, and perform cost segregation studies.
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Break even or burn? A weak economy calls for strong analytical tools
November / December 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 605
Abstract: Breakeven and burn rates have historically been used to gauge the viability of new borrowers that have yet to turn a profit, such as startups and high tech firms. But today lenders are applying these analytical tools to mature companies that are struggling to survive the recession. This article looks at what’s involved in a breakeven analysis, and how to calculate a customer’s burn rate (how fast it uses cash). It’s important to recalculate burn rate on a regular basis because unforeseen circumstances can affect the rate of cash consumption.
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Being on the lookout for deceivable receivables
November / December 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 849
Abstract: Next to cash, receivables are the most trusted source of loan collateral. But face value might exaggerate the truth. To protect against deceivable receivables, it’s important that lenders compare a borrower’s receivables to expenses to look for fictitious sales, and investigate journal entries that occur after the end of the accounting period. They should identify and monitor customers with too much concentration risk, and go beyond the financial statement to look at supplemental schedules, in addition to taking other proactive measures. When a borrower suffers from poor collections, there are specific actions a lender can take to help correct the situation.
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Market niche insider – Making staffing firms work
September / October 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 461
Abstract: Staffing is a cyclical industry that fluctuates with the economy; revenue dwindles during downturns, and the current one is no exception. But observers expect that, as the economy gradually regains momentum, there will be a surge in the demand for temporary and permanent staffing services. But this also will be in response to changing trends within the industry, such as the shift to higher-skilled temps and “temp-to-hire” arrangements. To make the most of the next upswing, lenders should be sure that their employment-firm borrowers are revising their business models to keep up with the latest staffing industry trends.
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Why pay attention to internal controls?
September / October 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 555
Abstract: Some risky customer characteristics, such as inadequate internal controls, are not easily detected. Yet they are an essential cornerstone of asset protection. Whether through its own field audit or that of an independent auditor, a lender will need to get satisfactory answers to such questions as: Who has access to assets? Are accounts analyzed? And are controls prioritized?
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Closing is just the beginning – The real work starts after the merger or acquisition
September / October 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 631
Abstract: Regardless of how many spreadsheets a borrower runs or due diligence procedures performed before the deal closes, a lender won’t know if it will be successful until integration is completed. So the real work begins after the closing. A lender should examine how the new entity communicates the merger to its customers and how it transitions them into the new relationship. The company should similarly look to the concerns of its employees so as to retain the best performers. But, if all else fails, a demerger clause can provide a means of unraveling an unprofitable venture within a prescribed time frame.
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In the nick of time – Spotting distressed borrowers
September / October 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 1008
Abstract: The recession has impacted virtually every type of business. But how can a lender differentiate a temporary lag from irreparable mismanagement? Which borrowers are salvageable, and which are not? This article discusses not only red flags to watch out for in financial statements, but non-numeric indicators of distress, as well — such as employee turmoil, competitive pressures, management crises and a deteriorating track record. It describes proactive steps lenders can take, while a sidebar warns against lenient lending terms.
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Market Niche Insider – Evaluating a family affair
July / August 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 480
Abstract: Most family businesses are small private firms with limited resources to weather an economic downturn. Lenders should be on the lookout for relaxed management styles and minimal internal controls; nepotism; and a lack of clear succession planning.
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Signposts of strong internal controls
July / August 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 397
Abstract: Unfortunately, recessions entice some employees to commit fraud. Lenders should be on the lookout for three basic controls that differentiate strong internal control systems from weak ones: physical restrictions, account reconciliation and job descriptions.
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Greed and hubris have no place in bankruptcy
July / August 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 614
Abstract: Lenders might overlook minor transgressions in good times. But when contemplating bankruptcy, lavish spending and blatant disregard for corporate/personal boundaries are slaps in the faces of employees, creditors and lenders. Self-serving spending habits not only set a bad example and lower morale, but they also increase the likelihood of insolvency. And they leave less money for stakeholders to divvy up in liquidation. This article identifies red flags and recourse methods.
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Lean companies are healthy borrowers – Characteristics of efficient supply chain management
July / August 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 538
Abstract: In a downturned economy, operating inefficiencies can push shaky companies over the edge. But healthy supply chain management can help avoid inefficiencies. Characteristics of a strong system include centralized purchasing, shared information, preferred vendors, tight shipping policies and lean inventory practices.
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Risky customers – Watch out for signs of disappearing cash
July / August 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 895
Abstract: Forget net income and book net worth. When it comes to monitoring creditworthiness, cash is king. Every business experiences occasional cash shortfalls — that’s why they need lines of credit — but borrowers with chronic cash deficits may be on the brink of default. This article shows how to scrutinize the statement of cash flows, inquire about significant changes, and find hidden sources of cash. A sidebar shows how the “cash gap” — a financial metric — works.
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Market niche insider – A roadmap for lending to trucking companies
May / June 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 477
Abstract: More than 80% of communities rely exclusively on commercial trucks for their delivery of goods, according to the American Trucking Association. A cornerstone of our economy, the trucking industry provides opportunities to lease and finance equipment purchases.
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Cover your assets with key person insurance
May / June 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 385
Abstract: If one of your borrowers suddenly lost a key person, how would it affect their productivity, profits and ability to service debt? For many small businesses, the death or long-term disability of an owner or key employee spells disaster.
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How do your borrowers’ inventory practices stack up?
May / June 2009
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 659
Abstract: Although borrowers often pledge inventory as loan collateral, the amount shown on their balance sheets isn’t always accurate. In fact, inventory can be a breeding ground for mistakes because its accounting is complex and the volume of transactions that flow through the inventory ledger is high.