CLR

Showing 49–64 of 325 results

  • 4 steps to track the use of loan proceeds

    February / March 2019
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 384

    Abstract: When some small business owners receive a loan, they might find it hard to resist the temptation to spend the proceeds quickly and liberally. But this can result in unnecessary expenditures. This article points out that lenders can instill fiscal discipline in their borrower relationships from the start by taking four important steps, including establishing a monitoring process early and conducting site visits.

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  • Help your borrowers make leadership transitions

    February / March 2019
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 670

    Abstract: Current and ongoing demographic trends mean that a large segment of the population is heading for retirement. This fact may have significant effects on small business loans. As family business owners leave their companies for greener pastures, lenders need to make sure those same owners don’t leave their businesses in the lurch. This article explains that advising borrowers to create viable succession plans for leadership transition can work wonders to ensure their businesses’ long-term stability — and ultimately, the success of loan portfolios.

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  • Lean and mean: Reminding borrowers to stay efficient

    February / March 2019
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 653

    Abstract: Lenders can help their borrowers use assets, capital and employees efficiently by offering tips to help companies increase and sustain profitability. To maintain healthy lending portfolios, lenders may want to encourage their borrowers to streamline operations — thus improving both productivity and customer satisfaction. This article explains that lenders can serve as a resource for their borrowers to help them operate with as little waste of materials and time as possible.

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  • To lend or not to lend – When to say yes — or no — to a high-tech business

    February / March 2019
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 808

    Abstract: The demand for innovative, high-tech products is rapidly growing — and lenders can ride on the coattails of this high-growth sector. But, as with any borrowing arrangement, they must fully grasp the nature of applicants’ businesses when deciding whether to approve loans. This article explains how lenders can ensure their loan approvals are well founded by, among other things, conducting extensive research, requiring full documentation and having a monitoring plan in place. A sidebar suggests some important questions to ask when evaluating a loan application from a technology-based company.

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  • 4 questions for loan applicants on the brink of a social media meltdown

    Year End 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 431

    Abstract: It’s relatively easy for a small business to find itself in the crosshairs of a social media misstep. Everyone seems to have a smartphone and uses it to instantly share positive (and negative) customer experiences on social media sites. Likewise, a company’s marketing department might post images, videos and ads using the company’s social media accounts — and some posts may inadvertently elicit a negative response from customers and other stakeholders, thus reducing sales. This brief article offers four questions to help lenders ascertain whether to fund the resulting short-term cash crunch.

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  • How to help your borrowers reduce waste — and increase profits

    Year End 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 550

    Abstract: Helping manufacturing borrowers improve their waste reduction methods can lead to a stronger loan portfolio. This article lists some steps lenders can suggest to borrowers to help them increase efficiency and significantly reduce manufacturing waste — whether in the form of scrap, excess inventory, defects or inefficiencies in workflow. Strategies include preventive maintenance, routine physical inspections and effective quality control.

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  • There’s a report for that! Get the specific information you need with an AUP engagement

    Year End 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 669

    Abstract: A full-scale audit serves as a detailed and reliable snapshot of the business’s entire operations. But if a lender needs specific, targeted information on a potential problem, or set of problems, he or she should consider hiring a CPA to perform certain “agreed-upon procedures” (AUPs). This article outlines the differences between AUPs and audits and uses a hypothetical example to illustrate how an AUP works. It also notes that an AUP engagement can help lenders selectively investigate and identify issues that may benefit from immediate action.

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  • Lending to crowdfunded businesses

    Year End 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 823

    Abstract: Even an entrepreneur who completes a successful crowdfunding campaign will likely experience short-term cash crunches from time to time. This article suggests some ways for lenders to evaluate the application of a crowdfunded company applying for a short-term loan or line of credit, such as asking applicants with earlier crowdfunding rounds under their belt to provide a detailed accounting of how they used funds from previous campaigns. The article also suggests that lenders need to scrutinize the company’s financial projections, cost structure and revenue projections. A sidebar offers a guide to crowdfunding terminology.

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  • What to look for when lending to a nonprofit entity

    October / November 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 436

    Abstract: Lenders interested in providing debt financing to the nonprofit sector must develop the means to evaluate the creditworthiness of an organization that doesn’t make profit its primary goal. This article lists some factors that can help a lender gauge whether a nonprofit presents a prudent risk, such as whether the nonprofit is successful in fulfilling its mission and what its goals and metrics are. The article points out that nonprofits can be viable borrower prospects — if a lender is willing to invest the time to review an application and support the nonprofit’s mission.

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  • An appraisal of your borrower’s collateral can be invaluable

    October / November 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 749

    Abstract: It’s important for lenders to take a hard look at the current market value of a borrower’s assets periodically. One way to do so is to obtain a formal asset appraisal. This article explains the most common valuation techniques and how appraisers determine the appropriate standard of value. The article notes that an appraiser also can help a lender understand how much cash a borrower is likely to receive under various liquidation scenarios and help support decisions to reorganize or liquidate.

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  • Lender as detective: How to evaluate management estimates

    October / November 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 547

    Abstract: It’s important for lenders to make distinctions between their borrowers’ financial certainties and estimates based on management judgment. Lenders need to be able to ascertain when errors, either intentional or unintentional, may occur — errors that can make a big difference in a borrower’s financial health. This article suggests some strategies for lenders, such as paying attention to accounting estimates and fair value measurements, in helping them determine whether the assumptions behind a borrower’s numbers are valid.

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  • Bouncing back – Lending to businesses in the aftermath of a disaster

    October / November 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 868

    Abstract: In the aftermath of a natural or man-made disaster, small businesses often need immediate access to capital to tide them over. But lending to a company experiencing extreme challenges following a major weather event, such as a hurricane or an earthquake, is risky — especially if a business must relocate and rebuild its operations in a new location. This article provides some guidance for lenders in deciding which applicants to approve, offering several criteria to consider — including the extent of the damage, whether a company has dealt with disaster before and its previous performance. A sidebar lists some ways lenders and their banks can support disaster relief efforts.

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  • 4 hidden costs entrepreneurs omit from their forecasts

    August / September 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 439

    Abstract: When entrepreneurs prepare financial forecasts for their business plans, they sometimes overlook costs that might have the potential to derail their business. That’s particularly problematic if a bank relies on a forecast during the initial underwriting process or on an ongoing basis to justify increases in a start-up borrower’s debt. This article suggests four costs entrepreneurs tend to leave out or miscalculate.

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  • Head off concentration risk at the pass

    August / September 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 635

    Abstract: Concentration risk is a financial risk that comes into play when a borrower relies too heavily on one, or one set of, suppliers or customers — making the business vulnerable if those “key” suppliers or customers fail. Lenders need to identify these risks and help borrowers find ways to minimize the negative effects the risks might have on business performance. This article explains several types of risks and how to assess them. The article points out that a lender may need to adjust interest rates or take other measures to offset the risk, or even deny the loan until remedial measures are taken.

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  • Being there – Site visits can take you beyond the numbers

    August / September 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 654

    Abstract: Financial statements, strategic plans and other financial documents provide essential information about the health and prospects of borrowers’ businesses, but to really understand a company’s operations, a lender needs to see what’s happening first-hand. This article shows how site visits can provide essential information about borrowers and help lenders detect problems before distress symptoms appear on their customers’ year-end financial statements.

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  • What to consider when lending to a franchisee

    August / September 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 747

    Abstract: Some franchisors offer financing, but first-time franchisees often find themselves in need of traditional bank loans. And it’s not just new franchisees that need access to capital. Established ones frequently need funds to purchase new equipment, remodel their locations and meet short-term cash crunches. This article explains how to evaluate these types of loan applications. A sidebar discusses the importance of establishing a relationship with the franchisor to increase the bank’s exposure to franchise-related lending.

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