TSL Feature Articles

The first quarter of 2024 presented a complex landscape for asset-based lending (ABL) and the broader economic context. According to the SFNet Q1 2024 Asset-Based Lending and Confidence Index surveys, the ABL industry exhibited both stability and cautious optimism despite the economic headwinds.

As we delve into the second quarter of 2024, the financial landscape is marked by both challenges and opportunities. The latest SFNet Market Pulse Report provides a comprehensive analysis of various economic indicators, trends, and projections that are crucial for stakeholders in the secured finance (notably asset-based lending and factoring) industries. This article synthesizes the key findings and insights from the report, offering a detailed overview of the current economic outlook, credit markets, consumer finances, sector activity, and global economic trends.

The secured finance industry is feeling the strain as the industry ages and its most experienced executives retire. Here, SFNet members offer their points of view on the challenge.

Past SFNet 40 Under 40 Award recipients discuss how the Award affected their careers and offer advice to the next generation.

Earlier this year, Jeffrey B. Dunlop and Maria T. McGuire were named co-chairs of Goldberg Kohn’s Commercial Finance Practice Group. They succeed Michael Hainen, who completed his highly successful nine-year term as the practice group leader at the end of 2023.

As the automotive industry moves toward electrification, lenders face an uncertain path forward. The successful transition to EVs will require substantial investment at all levels, from charging technology and coverage to dealership infrastructure. As the effect on total cost of ownership unfolds, the residual value models that underpin the entire industry will need to be redefined, impacting financing and leasing. Lenders to the mobility sector should be prepared for further disruption which will provide either opportunities or create credit challenges as companies navigate this dynamic landscape.

Finding the right combination of capital resources and strategic knowledge in the sale and restructuring of a business is complicated; but when it works, this seemingly magical process of transformation creates incremental value for all constituents involved in the bankruptcy process. Take the case of Armstrong Flooring, and three affiliated companies, that each filed petitions in the United States Bankruptcy Court for the District of Delaware seeking relief under Chapter 11 on May 8, 2022.

Since the DEI “field” is a potpourri of research, advocacy, political ideations,
and personal perspectives from multiple fields, it is difficult for people to know which sources of information to trust. One of the latest urgent fascinations that has captured our collective attention is “DEI Fatigue.”

Industry ally and affinity group members and leaders share their stories and discuss how their organization’s groups began and their benefits.

How will reduced consumer spending and increased leverage cost stress manufacturing & industrial companies in the year ahead?

In an increasingly paperless world, electronic bills of lading are garnering attention as an industry choice for cross-border commercial and shipping transactions. This article provides an overview of the legal framework prescribed by Articles 7 and 9 of the Uniform Commercial Code for a secured lender seeking to perfect its security interest in electronic bills of lading.

The credit risk panel at SFNet’s 79th Annual Convention focused on challenges such as consumer headwinds, the higher cost of capital, looming refinancing deadlines, and the prospect of more downgrades, bankruptcies and defaults. Overall, though, panelists were optimistic about credit appetite and the ability to negotiate risk through tighter deal structures and more in-depth borrower and sector analytics.

TSL’s editor-in-chief sat down with key members of Holland & Knight’s ABL team, including Wade M. Kennedy, partner and co-lead of the Asset-Based Lending Team; Christopher S. Dillon, partner and co-lead of the Asset-Based Lending Team; Hamid Namazie, financial
services partner; Yoojin Lee, financial services partner; and Mark Spitzer, financial services partner. Here, they discuss H&K’s strengthening of its finance practice, how they got their start in this specialty and the threats facing lenders in 2024.

Despite economic headwinds and higher costs of borrowing, secured lenders are expecting a profitable year ahead

“Liability Management Transactions” continue to grab headlines. Companies in distress are turning to the out-of-court restructuring of their debt in ways that leave lenders who made loans on the basis of a senior secured position either with certain assets no longer available as collateral pursuant to a “drop down financing” or subordinate to new tranches of debt pursuant to an “uptiering transaction.” This article takes a look at the arguments being made in some of the litigation that has often followed on such uptiering transactions and in particular the June 2023 decision of the Bankruptcy Court in the Serta case.

Commodity producers face volatile market swings due to factors such as macroeconomics and supply chain stability, creating risks for secured lenders. Understanding each commodity’s nuances, risk-management strategies, and regulatory considerations is crucial. To navigate these challenges, secured lenders must maintain strong industry knowledge, adapt lending structures, collaborate with third parties, and balance risk and return for their clients.

Barry Bobrow is a managing director and head of credit markets for Regions Business Capital. He is a widely respected leader in middle-market leveraged finance and asset-based lending. He has spent the past 38 years working in banking, most of it as a debt capital markets professional, primarily in leveraged lending and supply chain finance. Bobrow is the creator and chairman of the Asset Based Capital Conference (ABCC), an SFNet sponsored conference focusing on the middle-market leveraged and asset-based markets, now in its 16th year. Here, Bobrow discusses his career trajectory, his outlook for the industry and his goals for SFNet in 2024. 

What are the credit needs and opportunities for today’s small-business owners? This article explores results from Pathward’s new survey. 

The capacity for a lender to take effective security over a changing pool of assets is of critical importance to the asset-based lending market. 

Tariffs, digitization, trade policy among top themes

Held on December 3, 2024 at Greenberg Traurig, LLP in New York, NY, this inaugural conference aimed to help asset-based lenders stay informed about industry developments, improve their lending practices, and identify opportunities for growth.

SFNet’s Asset-Based Capital Conference returns to the Encore at the Wynn in Las Vegas February 11-12, 2025. Attendees will hear up-to-date market insights from industry leaders, thought-provoking discussions around the economy and industry dynamics, and networking opportunities with key decision makers.

Steven Meirink is the CEO of Wolters Kluwer Financial & Corporate Compliance (FCC), which provides lending, regulatory and investment compliance solutions to financial institutions and legal entity compliance solutions to corporations, small businesses, and law firms.

Washington enters 2025 with a policy landscape set for significant realignment as the Trump administration returns to office. Slim Congressional margins and pressing deadlines will complicate efforts to advance legislation. Meanwhile, key appointments at financial regulatory agencies, including Treasury, the OCC, the CFPB and the SEC, and other agencies across the administration will guide the implementation of financial services policy and other domestic priorities. 

On December 2, 2024, New York Attorney General (AG) Letitia James asked a state court to approve a settlement between the AG, Yellowstone Capital LLC (Yellowstone) and twenty-four related entities regarding a petition filed by the AG in March 2024.  

This Alert is not another Serta gripe. Rather, this Alert is about the exception to the developing Serta credit agreement language that excludes debtor-in-possession financing as one type of senior financing that does not require an opportunity to participate pro rata.

SFNet recently announced its DEI Committee has been renamed to the Inclusiveness Committee. The committee’s aim continues to be to understand the specific challenges and opportunities within our communities of interest, articulate the case for change and help implement strategies and tactics throughout SFNet.

Building a factoring or asset-based lending (ABL) platform that maximizes value and attracts capital requires more than operational success. A solid foundation that positions the business for growth, efficiency, and sustainability is crucial. Whether you're looking to secure capital through banks, non-bank lenders, or investors, here are five essential strategies to build and grow a high-performing factoring or ABL business.

Ranked for the last six years in the Top 50 Business Thinkers in the world by Thinkers50, Tiffani Bova is a thought leader who Forbes says “reshapes our perception of growth.”