TSL Feature Articles

  • Buffey Klein Exploring Forbearance Issues in the Context of COVID-19

    The lightning-fast spread of COVID-19 around the world has quickly transformed our commercial and financial outlook, ending one of the longest economic expansions in U.S. history and throwing future prosperity into doubt. As conditions deteriorate from here, the likelihood that lenders will need to consider a forbearance is high, and as such, now is a good time to identify at-risk credit facilities and perform any necessary due diligence.

  • David Morse photo What a Lender Needs to Know: Key Loan Document Terms in a Time of Crisis

    As circumstances are moving rapidly, companies and their lenders are dealing with unprecedented times.  While companies try to determine the full impact of the current economic tailspin on their businesses, lenders are looking to understand their risks and how they can respond to them.

    The credit agreement sets out the rules of the road for the relationship between a company and its lenders.  In the list of credit agreement provisions set out below we attempt to provide a map for the secured lender for navigating those rules, anticipating where there may be bumps or wrong turns and providing some guidance for where a lender may go in the credit agreement to determine its path when confronted with a borrower in distress.

  • David Morse photo What a Lender Needs to Know: Key Loan Document Terms in a Time of Crisis

    As circumstances are moving rapidly, companies and their lenders are dealing with unprecedented times.  While companies try to determine the full impact of the current economic tailspin on their businesses, lenders are looking to understand their risks and how they can respond to them.

    The credit agreement sets out the rules of the road for the relationship between a company and its lenders.  In the list of credit agreement provisions set out below we attempt to provide a map for the secured lender for navigating those rules, anticipating where there may be bumps or wrong turns and providing some guidance for where a lender may go in the credit agreement to determine its path when confronted with a borrower in distress.

  • Juanita Schwartzkopf - Headshot150x150 Will the Coronavirus impact your borrowers?

    Do not underestimate the impact of the Coronavirus on a company’s Q1 and Q2 2020 financial results.  The supply chain issues are unknown, the potential economic slowdown is unknown, and the length of time the impact will be felt is unknown.

    This will certainly be a standard excuse for performance weakness that will be heard over the next year.  Be prepared!

    As a lender, which borrowers do you consider for impact, and what do you do to stay ahead of the problem?

  • Brian Boland Lender Alert: Commercial Finance Disclosure Legislation In New York State Merits Watching ​

    If passed, proposed New York State Senate Bill S5470 (“the Bill”) would impose a disclosure requirement upon certain New York commercial lenders. This proposal follows a trend exemplified most notably in California, which amended the California Financing Law to require licensed commercial lenders and brokers to issue new disclosures to commercial borrowers in that state, including loans made via an internet platform.

    The required disclosures of the Bill approximate those in the loan estimate form issued to home buyers by residential mortgage lenders under the federal Truth in Lending Act. The Bill has several exceptions, leaving much of the commercial lending community unaffected and placing substantial regulatory burdens on a narrow remaining segment

     

  • Rachel Hersh Vernon Francois: Prestige Capital Supports Entrepreneur’s Partnership with Sally Beauty

    Vernon Francois grew up in a Rastafarian household where the weekly tradition was having his hair braided every Sunday. The experience was so painful that he decided to learn how to braid hair himself, using carpets and window shade edges as practice.

    All that practice paid off. When he was just Vernon Francois grew up in a Rastafarian household where the weekly tradition was having his hair braided every Sunday. The experience was so painful that he decided to learn how to braid hair himself, using carpets and window shade edges as practice.

  • Myra Thomas Your Client’s Cybersecurity Threat Is Your Threat Too
    The specter of cybercrime haunts every industry, but none more so than financial services. If there is considerable money involved or sensitive client data to steal, then there is certainly some cybercriminal looking for a financial firm to target. As secured lenders step up their efforts to secure their own systems and data, there is a growing understanding of the complexity of that task. Asset-based lenders and factors are increasingly aware that their cybersecurity procedures must be ongoing and dynamic to thwart a network intrusion and to quickly shut down and mitigate a hack if it does happen.
  • Smith_Brian_HollandKnight150x150 Isn’t That What it Says? --Potential Perils of Incorporation by Reference in Finance Transactions

    The author discusses the potential perils of improper use of “incorporation by reference” in commercial lending transactions, as well as potential strategies for reducing potential incorporation by reference hazards.

  • Maria Dikeos Syndicated ABL Volume up in 2019, Deal Count Down

    Refinitiv’s director of analytics shares with readers the latest data surrounding the syndicated market.

  • Myra Thomas SFNet Education Focus 20/20 Dynamic Educational Content is Key for Members
    As the Secured Finance Network celebrates its 75th anniversary, its commitment to the education of its membership remains tantamount to the organization. Part of that commitment is making sure that secured lenders of all stripes are provided with the essential tools, training, and best practices to ensure their professional success.
  • Hamid Namazie Interview with McGuire Woods’ Hamid Namazie

    Hamid Namazie is managing partner of McGuireWoods’ Los Angeles - Downtown office. He concentrates his practice on representing a wide range of clients, including banks, institutional lenders and commercial finance companies, providing asset-based loans.

  • Ken Wengrod, FTC Founded for Entrepreneurs By an Entrepreneur

    FTC Commercial Corporation was launched in 2002 with a strong focus on small and medium-size enterprise. Co-founder Ken Wengrod tapped into his experience, having worked in factoring and retail to create a company that understands the entire trade cycle of manufacturing and importing.

  • Dave Kucera, Capital One Lenders Think About Recession Readiness
    The head of Capital One’s Financial Institutions Group reviews the trends that lenders should be watching as we shift into 2020.
  • Thoughts on the Third Quarter 2019 Asset-Based Lending Index

    Q3 2019 results generally demonstrate the continuation of trends observed throughout 2019.  Year to date, we continue to have growth in the industry as a whole and credit quality remains solid.  There are a few notable deviations from trends observed throughout the year as we will see.

    General economic conditions continue to be top of mind for the secured finance community, but it is interesting to note that we continue to see a divergence between Bank and Non-Bank Lenders with respect to the SFNet Confidence Index. As a reminder, starting in 2019, we have chosen to divide the ABL lender universe along Bank and Non-Bank lines, as opposed to our previous methodology of splitting up the ABL lender universe by portfolio size.

  • Joseph Nemia, TD Bank Review and Forecast with Joseph Nemia, Executive Vice President - Head of Asset Based Lending at TD Bank

    Joseph Nemia looks back at 2019 and discusses what the secured finance industry can expect to see in 2020.

     

  • HuntingfordArt Trade Finance Insights: Financing Trade Receivables Beyond ABL or Factoring

    A Demica senior director explains how trade receivable securitization programs can be used as a valuable alternative to other funding solutions, especially in cross-border or challenging credit environments.

     

  • TSL1119_DrinkDailyGreens Putting Capital to Work - Far West Capital Customer: Drink Daily Greens
    Jan 6, 2020
    Meet an entrepreneur trying to make the world a “greener” place.  


    At 33 years old, Shauna was diagnosed with breast cancer - a head-spinning diagnosis for anyone, but especially a new mother at 33 who considered herself fairly healthy. Then came the draining, life-sapping chemo that would save her life, but leave her feeling weak and malnourished

  • JeffreyWurst UCC Insights - Looking For A Better Mouse Trap? Article 9 Sales Spring To Action.

    The time and cost of liquidating collateral can often be prohibitive and is always a nuisance. Of course, this problem is exacerbated when the asset value is less than the balance owed to the secured creditor(s), leaving no value for unsecured creditors. Lenders often step up and carve out an amount to be distributed to unsecured creditors to enable a Chapter 11 to proceed to effect a sale of the debtor’s assets free and clear of liens. Some consider this to be a price to be paid by secured creditors for the privilege of utilizing the bankruptcy court to sell their collateral. Thus, the cost of a bankruptcy can be very expensive not only to the debtor, but also to the secured lender. As a result, small and middle-market companies and their lenders have grown receptive to non-bankruptcy vehicles for the disposition of assets.

  • PaulSchuldiner_Headshot_150X150 Purchase Order Financing: Then, Now and What’s Ahead
    Purchase order financing has been around nearly as long as its close relatives (factoring) and distant ones (merchant banking), but has become much more prevalent in the last decade. With better technology and other innovations accelerating manufacturing and production timelines to meet demand from e-commerce and big box customers, the global supply chain has never been under more stress. We see this with the China tariffs, Brexit and other significant changes to trade policy. Purchase order financing has never been a more valuable option for companies buying and selling around the globe.
  • KarabusArt The Digital Transformation is Severely Disrupting Retail: The Time for Action is Now

    The transformation of retail is creating new and significant challenges for traditional retailers. Antony Karabus, CEO of HRC Advisory, explores those obstacles and offers solutions to help retailers survive – and even thrive — during these tumultuous times.

Click on the link below to meet some of the “difference makers” in the secured finance community. This issue of The Secured Lender celebrates those who are having a profound impact on both their communities and their organizations. 

See Profiles


Previous TSL Articles

  • Buffey Klein Exploring Forbearance Issues in the Context of COVID-19

    The lightning-fast spread of COVID-19 around the world has quickly transformed our commercial and financial outlook, ending one of the longest economic expansions in U.S. history and throwing future prosperity into doubt. As conditions deteriorate from here, the likelihood that lenders will need to consider a forbearance is high, and as such, now is a good time to identify at-risk credit facilities and perform any necessary due diligence.

  • David Morse photo What a Lender Needs to Know: Key Loan Document Terms in a Time of Crisis

    As circumstances are moving rapidly, companies and their lenders are dealing with unprecedented times.  While companies try to determine the full impact of the current economic tailspin on their businesses, lenders are looking to understand their risks and how they can respond to them.

    The credit agreement sets out the rules of the road for the relationship between a company and its lenders.  In the list of credit agreement provisions set out below we attempt to provide a map for the secured lender for navigating those rules, anticipating where there may be bumps or wrong turns and providing some guidance for where a lender may go in the credit agreement to determine its path when confronted with a borrower in distress.

  • David Morse photo What a Lender Needs to Know: Key Loan Document Terms in a Time of Crisis

    As circumstances are moving rapidly, companies and their lenders are dealing with unprecedented times.  While companies try to determine the full impact of the current economic tailspin on their businesses, lenders are looking to understand their risks and how they can respond to them.

    The credit agreement sets out the rules of the road for the relationship between a company and its lenders.  In the list of credit agreement provisions set out below we attempt to provide a map for the secured lender for navigating those rules, anticipating where there may be bumps or wrong turns and providing some guidance for where a lender may go in the credit agreement to determine its path when confronted with a borrower in distress.

  • It’s the Economy: 2020 Outlook Driven by Wide Range of Global Trade and Policy Events

    Jeffery Wacker, head of U.S. Asset Based Lending Originations, TD Bank, with contributed insights from Elizabeth Rust, Senior Economist, Keybridge in Washington D.C. and David Chmiel, Managing Director, Global Torchlight Limited from London, U.K.

  • Companies Pinched By Virus Approach Banks For New Credit

    Some of the companies hit hardest by the Covid-19 coronavirus are starting to talk to banks about short-term loans that would provide a safety net during the outbreak, according to people familiar with the matter. Discussions are preliminary and have occurred mostly with airlines, said the people, who asked not to be named discussing private information. Companies in industries such as energy and travel and leisure with investment-grade or high-yield ratings could also consider backup financings, they added.

     

  • Juanita Schwartzkopf - Headshot150x150 Will the Coronavirus impact your borrowers?

    Do not underestimate the impact of the Coronavirus on a company’s Q1 and Q2 2020 financial results.  The supply chain issues are unknown, the potential economic slowdown is unknown, and the length of time the impact will be felt is unknown.

    This will certainly be a standard excuse for performance weakness that will be heard over the next year.  Be prepared!

    As a lender, which borrowers do you consider for impact, and what do you do to stay ahead of the problem?

  • Brian Boland Lender Alert: Commercial Finance Disclosure Legislation In New York State Merits Watching ​

    If passed, proposed New York State Senate Bill S5470 (“the Bill”) would impose a disclosure requirement upon certain New York commercial lenders. This proposal follows a trend exemplified most notably in California, which amended the California Financing Law to require licensed commercial lenders and brokers to issue new disclosures to commercial borrowers in that state, including loans made via an internet platform.

    The required disclosures of the Bill approximate those in the loan estimate form issued to home buyers by residential mortgage lenders under the federal Truth in Lending Act. The Bill has several exceptions, leaving much of the commercial lending community unaffected and placing substantial regulatory burdens on a narrow remaining segment

     

  • Mike Boudreau Receivership Strategy When Risk is Long and Time is Short
    Lenders are faced with difficult circumstances when a borrower’s business and the bank’s collateral is deteriorating.  The downward spiral often includes declining or negative earnings, insufficient cash flow, declining enterprise value, escalating trade debt and “tripped” financial covenants.  Further, management has not been able to reverse these negative trends and worse, have likely not been able to forecast these problems before they were reported. This will certainly erode trust between a borrower and their banker. When a lender is primarily concerned with protecting its collateral in a deteriorating situation, measuring alternative options can be considered relative to control, time, exposure and cost.

     

  • Rob Meyers photo It All Started With Key Lime Pie
    Rob Meyers discusses the growth of Republic Business Credit. Republic is expanding its national platform through a dual strategy of organic growth and complementary acquisitions that add new products, talent and geographic expansion.  Republic represents one of the largest entrepreneurial finance companies in the United States. 
  • Goldrich-150 Interview with North Mill Capital's Jeff Goldrich
    TSL Express caught up with Jeff Goldrich, president and CEO of North Mill Capital (NMC), on the lender’s recent acquisitions. North Mill Capital acquired two factoring companies in 2019: Sage Business Credit, a Minneapolis, MN-based factoring company and Salt Lake City, UT-based Summit Financial Resources, in June 2019. Goldrich discusses what the acquisitions mean for North Mill.