CLR

Showing 273–288 of 345 results

  • Market Niche Insider – Lend a helping hand – How to gauge a not-for-profit’s creditworthiness

    August / September 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 427

    Abstract: Not-for-profits (NFPs) are among those hardest hit by the recent recession. They’re collecting less cash from government funding and private donations. At the same time, more individuals are turning to charities for help with basic needs. In supporting their local communities, lenders often donate time to NFPs or add these entities to their loan portfolios. This article offers some helpful tips to follow when lending to a charity.

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  • S corporation essentials – What should you know about this business structure?

    August / September 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 638

    Abstract: The fear of double taxation has caused many U.S. businesses to turn to a corporate structure that can best protect their profits: a Subchapter S corporation. Because the rules for S corporations are often in flux, lenders need to keep on top of how they work and what the restrictions are. And business owners — and their lenders — need to be aware of certain hazards inherent in this corporate arrangement. This article explores the ins and outs — and pros and cons — of S corporations.

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  • Changing of the guard

    August / September 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 850

    Abstract: When a borrower hands over the reins of a family business to another owner, it’s important to judge whether that change will be good or bad for loan repayment. Plus, lenders who stay atop ownership changes may be rewarded with new lending opportunities. This article discusses how to assess the company’s management strength, and the importance of looking at a sale’s structure and funding, including the possible use of ESOPs. A sidebar addresses formal contingency plans in the event of a sudden business disruption.

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  • Site visits yield surprises

    August / September 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 666

    Abstract: Site visits give lenders something financial statements don’t — a hands-on understanding of their borrowers’ operations and a way to foster long-term lending relationships. An inside view can be an eye-opener when it comes to prospective and existing customers alike. This article discusses what to look for in a site visit, and possible frauds that may be lurking.

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  • Market Niche Insider – Plastic makes perfect – Plastic molders with discipline beat the odds

    June / July 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 399

    Abstract: There’s no margin for error in plastics production. Productivity is higher than ever, but a variety of factors continue to threaten profits. Strong manufacturers not only exercise discipline in their approach to pricing, but have a formal long-term survival strategy. It may be necessary to steer borrowers who lack discipline and focus to an outside professional for a wake-up call.

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  • Risk checklist – 7 liabilities worth uncovering

    June / July 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 395

    Abstract: Unearthing not-so-obvious risk and liabilities is multilayered: Lenders should perform industry risk analyses, interview management, request additional documentation and pay attention to business community word-of-mouth. This article poses seven questions meant to help lenders uncover some of the potential risks and liabilities that can compromise debt service.

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  • Down economy invites fraud – Lender due diligence is a deterrent

    June / July 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 681

    Abstract: Instances of fraud rise during down economies, making fraud awareness and detection critical — not only for business owners, but also for lenders. They need to look out for the “fraud triangle,” a set of conditions that invite malfeasance, along with signs indicating that fraud may already be underway. And lower-level employees shouldn’t be the only object of scrutiny — C-level fraud, in which owners and managers have the authority to override internal controls, is trickier and more costly.

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  • Appreciate the art, science of valuation

    June / July 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 956

    Abstract: Lenders often have a stake in private company mergers and acquisitions, so it’s important that they know whether the target’s price is reasonable. Procuring a professional appraisal upfront can mean the difference between a long-term lending relationship and default. To help make informed lending decisions, lenders should know the standards of value used by appraisers, along with their valuation methodologies. A sidebar to this article points out the dangers of relying on generic valuation formulas.

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  • Market Niche Insider – Are startups worth the risk?

    April / May 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 430

    Abstract: A popular urban myth is that 90% of new businesses fail, but the reality is quite different. According to the U.S. Department of Commerce, for example, seven out of every 10 startups survive at least two years and about half reach the five-year mark (not counting adequate businesses that are voluntarily closed or are sold). To improve their odds for successful startup lending, lenders need to carefully scrutinize the borrower’s macroeconomic matters, the caliber of the entrepreneur, and the business plan.

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  • A matter of opinion – What audit opinion lingo suggests about your borrower

    April / May 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 543

    Abstract: Audit opinion letters present clues to the worthiness of potential borrowers. The type of opinion expressed — unqualified, qualified, adverse or disclaimer — may have serious implications about the audit’s compliance with accounting rules and the borrower’s ability to operate as a going concern. It’s important for lenders to know what’s in the audit opinion letter, and how to regard each of the four different kinds of opinions.

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  • Appraisal reports – A recipe worth knowing

    April / May 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 760

    Abstract: Long before a client’s appraisal report is prepared, much work has gone into arriving at the value of the company. The valuation process will vary according to the business being examined, but some practices are common. Appraisers often rely on three common approaches when valuing a business, but may use values from other sources to reconcile against their own analyses. They also must decide, on a case-by-case basis, the extent to which adjustments apply, and carefully scan appraisal appendices in search of important information.

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  • Surviving bankruptcy in the supply chain

    April / May 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 810

    Abstract: Healthy borrowers require strong supply chains. Initially, a weak supplier might mean increased costs, decreased availability of materials and production delays. Battle-weary, shrunken supply chains also can retard borrowers’ long-term ability to ramp up production when the economy improves. But, because lenders know how to evaluate financial performance, it’s important that they share financial analysis resources and techniques with their borrowers and educate them about the early warning signs of supplier insolvency. A sidebar discusses how auto dealers can thrive in spite of manufacturers’ woes.

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  • Market Niche Insider – Down but not out – How to assess construction companies during a recession

    February / March 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 425

    Abstract: In uncertain times, it’s important that lenders investigate what stopgap measures their clients have taken to stay afloat. Besides cutting back materials scrap and overhead costs, or even personnel, contractors can trim the fat by converting fixed costs into variable costs. It’s also important to check a borrower’s job-costing methods and frequency, and to review their monthly “completed jobs” and “jobs in progress” reports to evaluate performance. Finally, it’s important that the contractor not overlook potentially lucrative change orders.

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  • CPA audits – Concern about “going concern”

    February / March 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 723

    Abstract: When auditing a company’s financial statements, CPAs must consider whether the “going concern” assumption in the reports is on target — and if the company is, indeed, expected to continue to operate in the year ahead. For a commercial banker granting loans, CPAs’ conclusions about businesses’ financial health can help identify companies at risk of loan default. This article describes what goes into making a going-concern assumption.

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  • Don’t bank on book value – There may be more to fixed assets than meets the eye

    February / March 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 568

    Abstract: Borrowers often pledge fixed assets — such as real estate and equipment — as loan collateral. But there could be many reasons that the book values reported on a customer’s balance sheets are greater than their current market values. To some extent, management can massage estimates to avoid booking an impairment loss. Beyond asset impairment, a borrower’s balance sheet may be “off” if management fails to maintain an accurate fixed asset ledger. In today’s volatile marketplace, it’s imperative to keep a close watch on fixed assets, because they represent the largest category of investments for capital-intensive borrowers.

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  • Financial statements – Are you comparing melons to kumquats?

    February / March 2010
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 725

    Abstract: It may be tempting to compare two (or more) borrowers in the same industry. But blind comparisons can be misleading. Privately held firms often view earnings differently than public companies do, and S and C corporations differ in how they’re taxed and how they pay shareholder-managers. Cash vs. accrual accounting, along with discretionary accounting methods, also can affect financial reporting. A sidebar to this article explains that, while lenders might benchmark a borrower’s performance against industry averages, benchmarking data sources may use slightly different formulas.

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