CLR

Showing 97–112 of 333 results

  • 4 key areas to review when assessing ability to compete

    June / July 2017
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 425

    Abstract: There are several factors a lender should consider in assessing whether a small business is likely to meet its loan obligations. These include the competitive environment and the business’s tangible and intangible resources. This brief article explains the need for lenders to go beyond financial statement analysis to gain a realistic picture of a company’s ability to compete.

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  • Protect your portfolio with these retention strategies

    June / July 2017
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 593

    Abstract: To maintain a stable portfolio over time, lenders need to strengthen existing borrower relationships. This article discusses some key strategies lenders can use to retain current borrowers, such as suggesting refinancing or add-on options, regularly calling borrowers to address any concerns they may have about their loans and becoming a referral source for value-added services.

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  • Can you help borrowers turn receivables into cash faster?

    June / July 2017
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 640

    Abstract: To decrease the possibility of bad debt write-offs, lenders should educate their borrowers about some basic actions they can take to improve their collections. This article lists some helpful questions lenders can ask to point their borrowers in the right direction. These include whether their billing process is sound and whether they have a clear payment schedule. Providing support now will both ensure loans are more secure and cement lender relationships with borrowers.

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  • Trying times – Keeping a loan afloat when a borrower becomes seriously injured or ill

    June / July 2017
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 872

    Abstract: For a business highly dependent on its owner for day-to-day management and overall viability, owner injury or illness can threaten the business’s ability to function — and to make good on its loan. A lender has an important role to play in such a situation. This article explains that the lender’s actions can make all the difference in whether the owner is able to work through the challenges created by injury or illness. It also notes how the lender can help the owner face such problems squarely, so that a mutually beneficial solution is more likely. A sidebar suggests several questions to ask to help determine the impact of the owner’s ailment on the business.

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  • Take stock of inventory

    April / May 2017
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 402

    Abstract: A small business’s ability to track inventory and minimize errors, omissions and fraud depends on the existence of a robust inventory reporting and tracking system. This brief article defines several general elements an inventory tracking system needs to include — whether it’s manual or computerized — including inventory requisitions, receiving reports and an inventory ledger. The article also suggests that the determination of whether an inventory system is effective may require occasional site visits and interviews with owners and managers.

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  • High business credit scores equal affordable financing

    April / May 2017
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 662

    Abstract: Credit applicants with low credit scores are often surprised when they’re turned down or offered less favorable terms than expected. This article points out that lenders need to remind prospective borrowers of the importance of establishing and maintaining the highest business credit score possible. The article explains some ways businesses can stay on top of their credit score, including separating personal and business credit and paying on time. It also discusses credit reporting agencies and how they operate.

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  • How auditors assess a borrower’s financial viability

    April / May 2017
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 548

    Abstract: A CPA evaluates the going concern assumption during a financial statement audit to get a picture of a company’s financial health and viability going forward. This article describes a few items they look for during that assessment, including potential red flags like pending lawsuits and investigations, working capital deficiencies, negative operating cash flow, the loss of a major customer or franchise, loan defaults and debt restructurings. The article notes that audit opinions can offer important clues as to whether companies will continue to operate as going concerns.

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  • Are prospective borrowers telling the truth? Learn the warning signs associated with deception

    April / May 2017
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 869

    Abstract: Most borrowers respond honestly when they meet with bankers about their financial condition. But those with less than stellar records may be tempted to downplay their true economic situation. Lenders need strategies to help them determine if a loan applicant is telling the whole truth. This article offers some forensic accounting tips for uncovering exaggerations, misstatements and outright fraud when managers are suspected of dishonest behavior. A sidebar lists several questions lenders should ask if they are concerned about potential inconsistencies — or deception — on the part of their borrowers.

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  • 3 ways to minimize risk when lending to seasonal businesses

    February / March 2017
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 372

    Abstract: Some borrowers, such as landscapers, hotels and toy manufacturers, experience significant seasonal fluctuations in their financial performance. But seasonal businesses still require working capital throughout the year, and often turn to banks for support during the off season. This article discusses three approaches that can help lenders assess and manage the credit risk associated with lending to seasonal businesses.

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  • Trust but verify: Evaluate financial restatements carefully

    February / March 2017
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 641

    Abstract: Misinterpretation of accounting standards or mistakes may cause businesses to reissue their financial statements. But financial restatements also can be a sign of incompetence or fraud. This article explains that lenders need to closely examine financial restatements to accurately evaluate their borrowers’ situations. The article looks at the most common reasons for financial restatements, pointing out that lenders need to dig deeper to determine whether restatements are simply correcting mistakes or potentially fraudulent.

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  • Timing is everything – How to measure liquidity using the cash conversion cycle

    February / March 2017
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 582

    Abstract: To measure liquidity, lenders traditionally look to the balance sheet and compute the current or quick ratio. This article discusses another, lesser-known metric called the cash conversion cycle (CCC), using an example to illustrate how the CCC metric functions. The article notes that using the CCC and other liquidity benchmarks together with other tools, such as leverage, growth and profitability metrics, can help a lender gain a comprehensive risk assessment.

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  • Is your borrower worth the risk? SWOT analysis provides answers

    February / March 2017
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 815

    Abstract: An analysis of a prospective borrower’s strengths, weaknesses, opportunities and threats (SWOT) can reveal whether the company is vulnerable to competitors or potential threats. This article offers some guidance to help lenders decide whether to continue to work with a troubled borrower to fix problem areas. A brief sidebar notes the importance of determining whether the borrower is willing, or unwilling, to remedy any issues revealed by the SWOT analysis.

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  • In the News – Beware of non-GAAP metrics

    Year End 2016
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 435

    Abstract: Many companies report financial metrics that don’t conform to U.S. GAAP in their business plans and other promotional materials. This article explains how these figures can sometimes cast a more favorable light on the borrower’s historic and prospective operations than the GAAP figures do. And it provides some questions for lenders to ask their borrowers about whether the use of non-GAAP figures makes sense — or whether it could potentially be misleading.

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  • What does it mean to operate “lean”?

    Year End 2016
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 624

    Abstract: Thirty years ago, “lean” manufacturing was an innovative concept — and it’s still relevant today. Lenders may need to remind their manufacturing borrowers that the secret to staying lean is continuous improvement. This article provides a brief overview of the four cornerstones for building a lean foundation.

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  • Nothing ventured, nothing gained – Reap the rewards of signing on new customers, but beware of the risks

    Year End 2016
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 602

    Abstract: Working with existing borrowers to help grow their businesses can be rewarding. But sometimes you need to branch out and pursue new lending opportunities. When you do, it’s critical to “dial up” your due diligence procedures. This article discusses the importance of site visits, Internet and social media searches, and industry research before committing to a new borrower.

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  • Let’s read the footnotes

    Year End 2016
    Newsletter: Commercial Lending Report

    Price: $225.00, Subscriber Price: $157.50

    Word count: 869

    Abstract: Financial statement footnotes can provide a wealth of useful information. Experienced lenders know to look beyond the numbers and consider qualitative details and narrative disclosures, as well as what’s not being said. This article provides some examples of disclosures (or omissions of information) that lenders should watch out for, as well as ways to find more details. A sidebar discusses the rising popularity of sustainability disclosures.

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