- FTI Consulting Bolsters Health Solutions Practice with Seven Senior Appointments
- Nick Bassi Joins FrontWell Capital Partners as Vice President, Underwriting and Portfolio Management
- Conway MacKenzie Hires Steven J. Alexander as an Executive Director for its Grand Rapids Office
- Santander Bank Appoints Patrick Dunphy Head of Mid Corporate Banking and Verticals
- Andy Pohlman Joins First Federal as SVP and Regional Market President
TSL Feature Articles
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.
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.
Putting Capital to Work - Far West Capital Customer: Drink Daily Greens
Jan 6, 2020Meet 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
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.
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.
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.
Interview with Incoming SFNet President John DePledge
John DePledge currently serves as the head of Asset Based Lending of Bank Leumi USA. With over 35 years of ABL experience, John has built portfolios in numerous new markets and has held senior leadership roles in originations, portfolio management, underwriting, asset recovery and field examination. Here, he outlines SFNet’s 2020 goals after its recent transformation.
SFNet Hall of Fame Inductees
Oct 16, 2019When we set out to rebrand the Commercial Finance Association over a year ago, we knew we wanted to build on our proud heritage while looking to the future. That timeless adage “remember where you came from” was at the forefront of our minds as we discussed the new brand. There were many positive attributes that we wanted to preserve as we planned to reposition our value proposition to align with the priorities of our diverse network.
The TSL Interview: Michael D. Sharkey: Celebrating 40 Years in ABL
Sep 20, 2019
Michael D. Sharkey is the president of Fifth Third Business Capital. He oversees a nationwide market with regional offices across the United States and Canada. Sharkey is past president and chairman of Secured Finance Network. He is also past president of the American Brain Tumor Association. Sharkey is a graduate of Rutgers University and J. L. Kellogg Graduate School of Management at Northwestern University. Here he discusses his long career, the outlook for the industry and Fifth Third’s acquisition of MB.
Lending to Business Aviation: Don’t Wing It
As with any industry, lending to the business aviation sector comes with its own set of risks. Shelley Svoren of First Republic Bank gives readers the insider’s tips on this industry.
Ecommerce and the Omnichannel Equation
Tim Anderson of Hilco Valuation Services discusses Omnichannel appraisals, which are now more common than traditional brick-and-mortar appraisals.
Middle-Market Companies Find Opportunity in Food & Beverage Disruption
Capital One executives discuss how innovation in the food & beverage sector are making it an industry lenders don’t want to ignore.
Construction: Cycles and Considerations in Lending
A Conway MacKenzie executive provides an overview of the construction industry, including its unique cycles. Lending into the construction sector can prove to be a lucrative decision if extensive due diligence is conducted deep into a company’s financials. There are a wide range of factors and potential pitfalls to consider, understand and navigate properly.
Everything You Wanted To Know About Cannabis…But Were Afraid To Ask
Sep 10, 2019
Money-laundering statutes, restrictive banking regulations and the stigma surrounding the cannabis industry have caused established banks and well-known independent secured lenders to stay clear, but the possibility of new regulations may ease their fears.
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.
Previous TSL Articles
SFNet Provides Summary of Economic Aid Act
The Consolidated Appropriations Act, 2021, an omnibus stimulus and budget act that includes the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act), was enacted on December 27, 2020. The Economic Aid Act amends, extends and expands several key stimulus programs as summarized below.
A Closer Look at Retailer Resilience During the COVID-19 Pandemic
Retail has taken a huge hit from COVID-19. What sectors are expected to survive, even thrive? What areas are likely to be hardest hit as the pandemic continues?
Much has been written about the significant impact of the COVID-19 pandemic on the retail sector, as policymakers encourage consumers to wear masks and remain vigilant when leaving home, e-commerce sales have soared, and supply chain concerns persist. Retailers have been challenged to maintain operations and attract current “homebody” consumers, more than 68 percent of whom planned to continue their at home habits after restrictions were lifted, according to a study by management consulting firm McKinsey & Company.1
Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act: PPP Loans Round 2
The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act was signed into law. While the implementing regulations are not required to be issued by the SBA until January 6, 2021, the Act does provide insight into the new and revised programs.
The purpose of this article is to provide an overview of the Act to allow borrowers and lenders to take advantage of potential liquidity enhancements.
House/Senate Approve Next Round of Economic Stimulus
Last night the House and Senate approved a $900B next round of economic stimulus. The full text of the bill can be found here as well as a detailed summary. SFNet’s Advocacy Committee is reviewing the language and will hold an informative webinar as soon as practical in January. In the meantime, you may wish to consult your advisers. In addition to other broad reaching measures, the statute provides for:
- PPP extended through March 31, 2021
- CECL and TDR provisions potentially deferred until January 2022
- Additional allocations for EIDL Grants
- ERTC extended and expanded
- Rescission of emergency lending facilities, including MSLP, in their current form
Seizing the Moment of Rising Home Health Demand
Home health services have long been a convenient and cost-effective way for patients to receive crucial medical attention in the security of their own homes. But, until recently, these services were mostly limited to post-acute care that required little to no specialized equipment. This year, the continued rise of COVID-19 has underscored the importance of access to safe and worry-free healthcare that goes beyond post-acute services, as more and more patients fear contracting the virus during a clinical visit or nursing home stay.
Lenders Reveal Slow Growth and Choppy Recovery After COVID-19
For almost 25 years, Phoenix Management Services has been collecting, tabulating, and analyzing the results from its “Lending Climate in America” survey to evaluate national lending attitudes and trends. Each quarter Phoenix’s proprietary “Lending Climate in America” survey is distributed to over 5,000 lenders nationwide. Results for the Q4/20 survey, which were received between 11/10/2020 and 11/24/2020, revealed optimism among lenders regarding the U.S. economy in the near-term. In the Q4/20 survey, their near-term expectations (i.e. how will the U.S. economy perform during the next six months) increased 33 points to a grade point average (GPA) of 2.05. However, lenders long-term expectations (i.e. how will the U.S. economy perform beyond the next six months) decreased 17 points to a GPA of 2.43. Our Q4/20 survey also indicates that lenders expect a) COVID-19 to cause slow growth and a choppy recovery for the U.S. economy, b) negligible effects in regard to a potential second stimulus, and c) that their customers will raise additional capital and make an acquisition in the long-term.
YoPro Leadership Summit - Economic Panel Discussion Recap
This year’s YoPro Leadership Summit, held virtually August 26-27, 2020 brought together the young professionals of the secured finance industry for opportunities to hear from industry leaders, connect with peers, and to discover together how to find success in the post-COVID environment. This year's theme was "Succeeding in the New Environment."Panels included an Economic Discussion, focusing on wealth management and personal finance, Standing Out While Working from Home, Lending Through COVID, with an exploration of the changes in credit and legal due diligence during a pandemic, and a Titans Roundtable, consisting of industry leaders discussing career advice and experiences going through the ranks as well as managing their teams during COVID.
Left Behind: Minority Debt Holders and Superpriority Exchanges
A trend towards superpriority debt exchanges that has begun appearing in out-of-court restructurings will continue to cause worry amongst minority debt holders and will likely result in continued litigation regarding the propriety of such exchanges. Examples of such troublesome exchanges began with an exchange conducted by Serta Simmons Bedding, LLC (“Serta”) and has continued with structurally similar transactions conducted by other companies, including Boardriders, Inc. (“Boardriders”) and TMK Hawk Parent, Corp. (“TriMark”).
Tyler Layne and Lee Sands, attorneys at Waller Law cover three recent out-of-court debt transactions that have introduced a novel way for majority lenders and borrowers to improve their position at the detriment of the non-participating/minority lenders.
SFNet Q3 Asset-Based Lending Index Analysis
The Q3 2020 Asset-Based Lending Index reflects improving confidence for lenders, fears of a double-dip downturn subsiding, and exhibits the continuing impact of PPP funds distributed in April. The U.S. economy rebounded during Q3 as lockdowns subsided, leading to a GDP surge of 33%. This growth had a clear impact on portfolio health with non-accruals, special mention, and write-offs reducing quarter over quarter.
While sentiment from both bank and non-bank lenders was more positive from Q2, the overarching theme of Q3 can be told by the continued decline in utilization for both bank and non-bank lenders alike. Bank groups set their lowest level in the five years since these figures were collected by SFNet, with 75% of banks reporting decreases. Non-bank usage reduced slightly over the previous quarter but are back to levels not seen since the first and second quarter of 2017.
Lien Portfolio Transparency Can Identify Filing Errors Before They Cost You
Name change invalidates lien filing, continuation is irrelevant
When a creditor, whose debtor filed for bankruptcy relief, sought adequate protection payments as a secured creditor, his status as a secured creditor was challenged by an Official Committee of Unsecured Creditors. Based upon filing errors he had committed, he was declared an unsecured creditor of the estate. Official Committee of Unsecured Creditors of Rancher’s Legacy Meat Co. v. Ratliff, 616 B.R. 532 (Bankr. D. Minn. March 23, 2020).
This case points out the critical importance of familiarity with subsequent events that can make a UCC filing seriously misleading, what to do to avoid its characterization as seriously misleading, and within what time period, so as to prevent later continuation statements to be ineffective and cause the supposed secured creditor to be deemed unsecured.
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The Secured Lender
The SFNet's Women In Secured Finance Issue