Commercial Lending Report
Showing 17–32 of 345 results
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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.
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Can you lend to a convicted felon? Understanding the ins and outs
October / November 2020
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 437
Abstract: Not every loan applicant comes to a lender with a pristine background. Some prospective borrowers may have a criminal record. This article looks at the ins and outs of evaluating a loan application from a convicted felon. It offers several steps to take, such as including legal counsel in any meeting with the prospective borrower to ensure the process is fair, and reviewing the institution’s lending policies and procedures for guidance.
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Suggest contract compliance reviews to help borrowers
October / November 2020
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 574
Abstract: Companies are scrambling for any advantage that will help combat the current economic downturn. Monitoring contract compliance can help businesses create more liquidity at a crucial moment in their operations. This article points out that helping borrowers understand the importance of contract compliance reviews in possibly saving costs and generating cash flow will be beneficial to borrowers — and to lenders’ loan portfolios.
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How to uncover hidden liabilities in financial statements
October / November 2020
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 553
Abstract: When applying for loans, borrowers may try to appear more attractive to lenders by failing to disclose unfavorable financial information. But lenders have the responsibility to look further than financial statements to ensure they have everything they need to make a sound lending decision. This article explains how lenders can search for undisclosed liabilities and risks. It notes the importance of working with an accounting professional and the borrower’s management team to find and resolve any issues before the risks of a loan outweigh the rewards.
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Lending to restaurants after COVID-19
October / November 2020
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 820
Abstract: Restaurants have been struggling to maintain business and attract customers during the COVID-19 pandemic. This article offers some factors to consider that can help assess the ongoing financial impact of the pandemic and whether lending to a restaurant is prudent in today’s uncertain conditions. Lenders need to look at a restaurant’s current financial performance, business strategies and compliance with government guidance, among other considerations. A sidebar suggests five questions lenders might want to ask prospective restaurant borrowers before meeting with their loan committees.