CLR
Showing 257–272 of 345 results
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Back to Basics – Do you read the statement of cash flows?
April / May 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 485
Abstract: The statement of cash flows is sandwiched between income statement and footnote disclosures in borrowers’ annual financial reports. Much like a middle child, it rarely garners the attention it deserves. But savvy lenders know that it contains valuable information about the sources and uses of their borrowers’ cash. This article discusses the four sections of the statement and how to glean important information from them.
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Keep tabs on distressed borrowers
April / May 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 1020
Abstract: Some borrowers continue to limp along — wounded and headed for failure — despite reports of a gradual economic recovery. Lenders who let their guard down are likely to get burned. This article offers the hypothetical case of Jane, a lender who was almost undone by blind trust in a long-time borrower. When the borrower became ill and his son took over, she didn’t immediately realize that he was in over his head. Fortunately, she took corrective actions in the nick of time. In a sidebar, Jane is more diligent in recognizing another borrower’s fraudulent activity.
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“I quit” – 4 questions to ask when a CFO leaves
April / May 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 532
Abstract: The CFO is the CEO’s right hand in most businesses, and his or her departure should be examined closely to determine whether it will affect the borrower’s creditworthiness. This article offers four important questions to consider: How important is the CFO to the company’s performance? Why is the person leaving? What will the stockholders think? And does the company have a replacement strategy?
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Your customers’ costs – Understanding health care reform
April / May 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 718
Abstract: As borrowers struggle to earn a profit in today’s topsy-turvy economy, they’re concerned about facing additional financial obligations under the Patient Protection and Affordable Care Act. Lenders can help demystify health care reform for their borrowers — and inform them about ways to manage labor costs in the years ahead. This article looks at how much coverage is mandated, and how small businesses can offset their costs through tax credits and a Small Business Health Options Program or “SHOP exchange.” It also looks at several nuances of the health care tax credit.
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Back to basics – S corporation vs. C corporation
February / March 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 466
Abstract: Entity choice is a strategic decision that affects bank customers’ legal liability, tax obligations and financial reporting. S corporations and C corporations are two popular choices for private business ownership. This article looks at some differences lenders should keep in mind when considering these corporations.
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Financial restatements – What do they really tell you?
February / March 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 661
Abstract: Lenders should be concerned about the accuracy of the accounting information in borrowers’ financial statements. But there may be “honest” reasons why borrowers need to correct their financial statements, such as when complex accounting principles are misinterpreted. This article examines some of those factors and shows how to minimize dependence on bad numbers.
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Get a grip on internal controls
February / March 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 918
Abstract: Understanding borrowers’ control systems is an important part of loan due diligence. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) lists five components of internal controls. This article discusses them, along with what to look for in management letters. Specifically, a sidebar points out that such letters must include “material weaknesses” and “significant deficiencies” in internal controls unearthed during audit procedures.
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Beware of these top tax traps – IRS strategic plan sheds light on potential audit risks
February / March 2011
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 740
Abstract: Under the IRS’s five-year strategic plan, Tier I activities — credits or deductions involving a large number of taxpayers in many industries, a significant dollar amount or high visibility — are specific high-risk transactions that IRS auditors must evaluate if a borrower is audited for any reason. This article looks at some possible consequences of an IRS audit and, proactively, some IRS hot buttons that lenders should watch for on their borrowers’ financial statements and tax returns.
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Market Niche Insider – Health clubs – It’s survival of the fittest
Year End 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 420
Abstract: It’s no surprise that the recession has taken its toll on the fitness industry. Health club spending is an easy target for households cutting back. Here are some ways to diagnose the health of fitness borrowers.
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8 questions to consider in M&A deals
Year End 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 595
Abstract: With priced-right sales opportunities ripe for the picking, some customers may be tempted to acquire another business as the economy mends. Others — those feeling the strain of the prolonged downturn — may be considering a merger with another, stronger business. In either scenario, a bank may be asked to provide financing. Here are some questions a lender should consider when sorting the potential winners from losers in a merger or acquisition deal.
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Dot your “i’s,” cross your “t’s” – Contract compliance reviews can expose gold
Year End 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 628
Abstract: Anyone who has ever found $50 in their pants pocket knows the thrill of an unexpected windfall. So unexpectedly finding thousands of dollars would be especially exciting. And that’s what many business owners discover after they sift through the details of their various contracts. Borrowers with more money in their pockets typically borrow less frivolously and default less often. A strong handle on contract compliance also decreases borrowers’ exposure to breach of contract claims. This article looks at how contract compliance reviews might make borrowers more liquid and, therefore, less risky.
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Are your clients growing too fast?
Year End 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 892
Abstract: In a turbulent economy it’s common for borrowers to stop growing — or start declining. But a lucky few have the opposite problem: They’re growing too fast. And experienced lenders know that unchecked growth can be just as detrimental to debt service as no growth at all. Featured is the tale of a rapid-growth borrower that got into trouble and how that situation was remedied, as well as some perils and warning signals of out-of-control growth. A sidebar discusses how the sustainable growth rate gives borrowers a guideline for reasonable growth expectations.
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Market Niche Insider – Professional practice pointers
October / November 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 420
Abstract: Lawyers, accountants and other professional services firms occasionally need financing to purchase equipment or fund seasonal shortfalls — just like any business. But they differ from retailers, contractors and manufacturers in noteworthy ways. This article shows why it’s important for lenders to examine a professional firm’s accounting method, succession plan and earnings trends.
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Cost segregation studies, your clients and you
October / November 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 772
Abstract: Although a cost segregation study doesn’t increase the depreciable base of a building, it may highlight additional value that a lender might not have otherwise seen in an assessment of its customer’s assets. This article shows how a cost segregation study identifies building components that qualify for accelerated depreciation, and how the IRS and Tax courts examine several factors to determine if an item is properly classified.
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Asset vs. stock sales – Let’s make a deal
October / November 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 575
Abstract: When it comes to mergers and acquisitions, the selling price takes center stage. But how the deal is structured can make or break the sale. The structure affects not only how much cash the seller receives, but also the business’s future profits, liabilities and banking relationships. This article explores the different effects of asset vs. stock sales for buyers and sellers.
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Lend to win – Score big with an approach that exceeds profit and loss
October / November 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 816
Abstract: Instead of considering only a business’s credit scores and end results, savvy lenders look at the full range of quantitative and qualitative factors when approving credit. This article offers a fictitious example of a company that was denied a loan by a bank that emphasized profits over other indicators. But the loan was approved by a different bank that had a long-term relationship with the client and took a more sophisticated look at its overall situation. A sidebar discusses the pros and cons of factoring as a way to access instant cash.