Banking
Showing 113–128 of 600 results
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The best-laid plans – Helping borrowers prepare for the worst-case scenario
Year End 2019
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 446
Abstract: When the owner of a small business dies or becomes disabled, the business’s lending institution may decide to foreclose, which may be the most appropriate choice — especially if the owner was the only employee. But for a small business with more than one employee, there may be other options. This article lists some questions that can help a borrower prepare for this eventuality and ensure the best outcome for both the business and the lender.
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Can the cash conversion cycle help determine liquidity?
Year End 2019
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 609
Abstract: A key factor when assessing whether a borrower will be able to make timely repayments of a loan is liquidity. There are several metrics lenders can use in this analysis, including the current or quick ratio. But this article focuses on the cash conversion cycle (CCC) metric. Using several hypothetical examples, it defines the CCC and explains how it works. The article points out that the CCC, as well as other liquidity metrics, can help lenders stay up to speed on ways to assess the risks — and rewards — their borrowers present.
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Put benchmarking in your borrowers’ toolbox
Year End 2019
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 638
Abstract: Benchmarking is a powerful analytical tool that compares a company’s performance with industry norms and best practices. By advocating for regular benchmarking studies, lenders can help borrowers gain a competitive advantage and remedy shortcomings. This article offers some hypothetical examples to illustrate how benchmarking can be useful to business owners and notes the importance of seeking data sorted by industry, size and geographic location, if possible.
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7 ways to avoid lending to an ineffective business owner
Year End 2019
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 808
Abstract: It’s important for a lender to be able to determine, before funding a loan, whether a prospective borrower’s presentation matches reality. This article suggests some steps lenders can take to determine whether business owners are likely to be successful, including evaluating their business history, examining trends in career history and ascertaining what strategies they use to stay up to date on the latest market developments. A sidebar offers questions that will help lenders obtain pertinent information about the viability of a borrower’s business going forward.
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Painting an accurate picture – What to look for during a walk-through
October / November 2019
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 474
Abstract: Lenders often conduct walk-throughs of borrowers’ facilities, particularly warehouses and manufacturing operations. But business owners who are intent on deception might reveal only what they want their lenders to see. This article explains how lenders can ensure that a walk-through provides a complete picture of the business and offers some questions lenders need to ask as they tour a company’s facilities. It suggests that a methodical, inquisitive approach can help make site visits more effective at catching potential problems early.
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How to evaluate a start-up
October / November 2019
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 723
Abstract: Whether to lend to a start-up is one of the most difficult decisions a lender faces. This article contains advice on how lenders can evaluate the pros and cons and determine the potential for success — or failure. The article points out that start-ups have only limited operating histories and may have never generated positive cash flow, or even revenue. It also notes that a start-up can provide a good lending opportunity — but only if the business plan is viable and based on reality.
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Help your borrowers avoid bad debt write-offs
October / November 2019
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 627
Abstract: Lenders can help borrowers avoid bad debt write-offs and strengthen their own loan portfolios by offering tips on how to improve the effectiveness of billing processes. This article suggests several ways businesses can improve payment schedules, including making reminder calls and conducting due diligence on customers. The article notes that providing useful advice to borrowers can enhance lending relationships.
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5 strategies to help resolve business partner issues
October / November 2019
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 751
Abstract: When owners get into a major disagreement, it can put lenders in a delicate situation. This article suggests five steps for responding to partner (or shareholder) disputes that will help protect a community bank’s interest. These steps include scheduling a meeting with the partners and engaging a neutral third party, such as a business coach, to help. A sidebar provides questions for evaluating problems between disputing owners.
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Bank Wire – FASB proposal delays CECL, lease accounting changes
Fall 2019
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 414
Abstract: This summary of recent developments in banking discusses a recent FASB proposal that provides breathing room for community banks struggling to implement the current expected credit losses (CECL) model and the new lease accounting standard. It also looks at a recent report issued by the Federal Reserve suggesting how to reform the Community Reinvestment Act by expanding assessment areas and updating asset thresholds, among other things. Finally, it discusses a new OCC Bulletin encouraging banks to refer to the OCC’s core lending principles in connection with their community revitalization efforts.
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Know the risks of the secondary market mortgage business
Fall 2019
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 563
Abstract: In the past few years, community banks have been turning more frequently to the strategy of selling the mortgage loans they’ve originated to the secondary market. This article points out that banks that don’t have a good grasp of the risks and rewards of this approach may end up losing out. It notes that, when entering into loan sale agreements, it’s important for community banks to pay close attention to the details — including all representations and warranties — to ensure the outcome is positive.
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Are you prepared? 5 common cyber threats to the banking industry
Fall 2019
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 676
Abstract: Cybersecurity is one of the most critical issues businesses face today — and banking is among the industries most affected by these attacks. This article looks at some of the most common cyber threats and explains how banks can conduct risk assessments to identify and quantify their institutions’ specific vulnerabilities and develop plans to address these threats and mitigate the risk.
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Making the transition to FDICIA reporting: Get an early start
Fall 2019
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 879
Abstract: The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) was designed to strengthen the FDIC and improve the safety and soundness of financial institutions, imposing stricter auditing, reporting and governance obligations on institutions as their assets cross the $500 million and $1 billion marks. This article explains that, as a bank grows, it’s important to anticipate when it will reach these thresholds and begin to prepare well in advance. A sidebar discusses the auditor independence requirements for FDICIA-covered banks.
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Help borrowers compete against larger competitors
August / September 2019
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 420
Abstract: Faced with one or more well-funded, bigger competitors, a small or midsize enterprise (SME) may feel pressure to borrow money to fend them off. Its loan application may create a compelling case for debt. This article suggests that, before submitting the package to the loan committee, lenders need to take the time to ask four critical questions about the SME’s competitive landscape, including determining what drives the SME’s customer acquisition and attrition.
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How can audit opinions help lenders?
August / September 2019
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 635
Abstract: CPAs regularly evaluate businesses as part of their financial statement audits, and their audit opinions can help lenders determine whether their borrowers will continue to operate as viable going concerns over time. This article advises lenders to seek unqualified audit opinions to obtain essential information about whether a borrower’s financial condition, position and operations are fairly presented in the company’s financial statements.
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The devil is in the details – Consider the upsides (and downsides) of lending to borrowers with multiple entities
August / September 2019
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 684
Abstract: It’s sometimes beneficial for tax or legal purposes for a business to divide related lines of business into separate legal entities. But this move can create potential legal complications — and it provides an opportunity for unscrupulous borrowers to hide fraud under the cover of their multiple business entities. This article discusses the pros and cons of lending to these types of borrowers. It notes that, if lenders don’t understand the ins and outs of businesses that split into multiple entities, those lenders may find themselves tangled in a web of legal and financial complications.
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Strategies for success – Lending to the million-dollar, one-person business
August / September 2019
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 803
Abstract: Million-dollar businesses run by just one person are increasingly common. In light of the concentration of responsibilities vested in a single “key” person, however, these types of businesses present different risks than companies with multiple owners and employees. This article explains how lenders can target, evaluate and mitigate the risk of lending to a solo entrepreneur. A sidebar offers some critical questions to ask during the loan application process.