CLR

Showing 65–80 of 333 results

  • 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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  • Is your commercial customer involved in money laundering?

    June / July 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 378

    Abstract: It often falls to loan officers, who have an in-depth understanding of customer relationships, to flag potential transactions that might indicate money laundering. This article discusses the three steps of the money laundering process and lists some red flags lenders should watch for in determining whether a potentially criminal act might be occurring. Warning signs include an unplanned loan pay-down or payoff, with no apparent business reason or explanation, and reluctance to provide the purpose of the loan or how the loan proceeds are being used.

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  • The ABCs of appraisal for lenders

    June / July 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 730

    Abstract: The value of property fluctuates over time, which makes it difficult to know the worth of the assets borrowers have pledged at any given point. This article points out that engaging an appraisal professional to provide ongoing formal appraisal reports can help lenders stay up to date on the current market value of their loans’ collateral.

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  • Financial statement reporting: Understand the distinctions

    June / July 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 683

    Abstract: It’s important for lenders to understand the distinctions between accounting standards and be able to recognize when — and why — borrowers choose to use different reporting systems for their financial statements. This article explains the differences between Generally Accepted Accounting Principles (GAAP) and tax-basis reporting, noting that both are valid and the decision of how to report financial information depends on a business’s specific characteristics.

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  • Lending to formerly bankrupt entrepreneurs

    June / July 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 829

    Abstract: An entrepreneur’s bankruptcy may overshadow years, or even decades, of prudent financial behavior. When does it make sense to lend to a formerly bankrupt individual or business? This article offers some guidance on how to determine whether the entrepreneur is a good risk, including the importance of broadening the investigation to gain an appreciation of the entrepreneur’s track record both pre- and post-bankruptcy. The article notes that, even if a lender decides not to approve a loan, the entrepreneur’s circumstances, as well as the bank’s loan guidelines, might change and allow for an approval at some point in the future. A sidebar notes the different types of bankruptcy protections.

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  • Helping women-owned businesses thrive

    April / May 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 415

    Abstract: Unfortunately, some women-owned businesses still struggle to secure access to investment capital — or to secure it at loan terms as favorable as men-owned businesses are receiving. This article offers some advice for lenders on how they can add more female entrepreneurs to their loan portfolios. It suggests that understanding the unique financing challenges women-owned businesses may face is key — and can help lenders create profitable, long-term lending relationships that benefit both their banks and women-owned businesses.

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  • How do you determine loan prices? Loan-pricing models are key

    April / May 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 655

    Abstract: Competitiveness with other banks is an important issue in determining loan prices, but failing to account for such factors as desired return, cost, risk and credit profile can drastically reduce a lender’s competitive advantage. A better way to set loan prices is to conduct a thorough, objective analysis using a loan-pricing model. This article discusses the benefits of loan-pricing models and suggests that using them can help lenders attract and retain customers with the highest credit quality.

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  • What goes up must come down – Stay ahead of the curve

    April / May 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 648

    Abstract: With strong real estate markets in many parts of the country, lenders might feel they’re sitting pretty. But markets are cyclical. Lenders need to prepare for the next economic slump. Weathering an economic downturn requires a plan. Yet waiting until the economy slows to develop one can lead to hasty, uninformed decisions. This article offers advice on developing criteria for evaluating loans, tracking customers’ banking activity and reviewing the exit process.

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  • A review of the new tax law: What lenders should know

    April / May 2018
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 852

    Abstract: The Tax Cuts and Jobs Act (TCJA) passed in late 2017 with significant implications for businesses. Lenders need to be aware of these changes and understand the potential ramifications for their borrowers — both positive and negative — so that they can help customers take full advantage of any new tax breaks and minimize the adverse effects of provisions that will generate additional revenue for the IRS. This article provides a review of some of the most relevant provisions. A sidebar lists several additional business-related tax changes borrowers may want to consider.

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