Secured Lender, The

Cfa Urges Aousc to Consider Proposed Bankruptcy Rule's Impact On Syndicated Abl Deals

The Commercial Finance Association has asked the Administrative Office of the US Courts (AOUSC) to consider the negative impact a proposed change to Federal Rule of Bankruptcy procedure 2019 could have on lenders involved in syndicated asset-based loan facilities. Rule 2019, as it stands now, requires that a representative of more than one creditor or equity security holder in a chapter 9 or 11 case to make certain disclosures in a "verified statement". The AOUSC will now consider the comment...

Letter From Thoughts From Cfa and Tsl Staff

Ted Kompa Joins Consulting Firm As Principal and Senior Partner

Cfa Sees Continued Stability in Abl in the United States

The Commercial Finance Association (CFA) has released its Quarterly Asset-Based Lending Index for the fourth quarter of 2009, revealing continued stability and signs that US businesses are seeking alternative sources of stable funding. In the fourth quarter of 2009, total committed credit lines grew by 1.2% among asset-based lenders, while 50% of respondents reported an increase in new credit commitments. However, the CFA warns that action is needed to ensure asset-based lenders continue to h...

Fraudulent Transfer Claims On the Rise

While signals about the pace of economic recovery continue to be mixed, a new study released by Navigant Consulting Inc, and the Economist Intelligence Unit shows a dramatic uptick in the number of fraudulent transfer claims filed as a result of last year's financial crisis. In the wake of the increase in fraudulent transfer claims, the study found that many financial institutions are taking steps to manage their risks. In one high-profile fraudulent transfer, Florida-based homebuilder Tousa ...

Midcap Business Credit Llc Completes Its Sale to Cantaro Capital, Llc

Hudson Capital Partners Forms New Valuations and Advisory Business

Hudson Capital Partners LLC, a national firm specializing in retail and consumer products asset dispositions, is expanding its platform of services with the launch of HCP Asset Advisors LLC, a new valuations and advisory business. As part of the announcement, the Company has appointed Yvonne Kizner as president of the division. Kizner is a CPA, previously with Coopers & Lybrand, now PriceWaterhouse Coopers LLC. Prior to joining HCP Asset Advisors, Kizner led the appraisal division of Gord...

Tony Howard to Head Getzler Henrich's New Atlanta Office

Getzler Henrich & Associates LLC, one of the US' leading turnaround and restructuring firms, announced the appointment of Tony Howard, 53, a seasoned corporate turnaround professional, as a managing director. Howard will be responsible for expanding the firm's presence and continued growth in the southeast US. Prior to joining Getzler Henrich, Howard was a director at Huron Consulting Group and, previous to that, had held senior level executive positions at two well-known regional restruc...

Bobby Lall Named Managing Director in Bibby's Canada Office

Bibby Financial Services Inc has named Bobby Lall managing director of its Bibby Financial Services (Canada) Inc office, where he will have responsibility for expanding its accounts receivable financing business with small and medium-sized firms. Lall, who joined the Bibby Line Group family of businesses in 2002, was most recently a managing director of Bibby Financial Services, London (Slough). Prior to that, he worked for an asset-based lender on a variety of cash flow solutions, Lloyds TS ...

Tsl Policy Watch: Capitol Hill and Beyond

The Commercial Finance Association's Advocacy Committee held a meeting in early February to set the Associations public policy agenda for the year. Four major issues were identified by the Committee as top priority for the CFA in 2010. These are: financial regulatory reform and access to capital for non-bank lenders, senate ratification of United Nations convention on receivables, OCC risk ratings and asset-based loans, and amendments to the bankruptcy code. The National Bankruptcy Conference...

Factoring: Portrait of an Industry

It's been another year of contrasts for the factoring industry. On one hand, existing client sales have been down because of the recession, lowering factoring volume from existing clients. On the other hand, most factors have been able to attract new clients either by stealing market share from struggling competitors or through referrals from banks, which have tightened up on traditional lending. Overall, profits are up for many factors, and their ability to charge higher rates because of the...

Opportunity Abounds for Factoring in 2010: Access to Capital Is Key

Most factors are looking ahead to a good year in 2010. They are benefiting from new clients, expansion into new industries and less competition. The factors that had adequate access to capital were in a much better position. As demand exceeded supply, they had the ability to be more selective in client acquisition and achieve higher margins. Subsequently, rates and fees rose because economic conditions increased the workload and level of risk. For most factors, this has translated to justifia...

Due Diligence in the Distressed Organization

Due diligence is a fact-finding mission or investigative exercise designed to provide the information required to meet a specific goal or objective. Typically, it is used when a business is involved in a purchase or sale or requires financing. However, distressed organizations also require due diligence to address the decision to attempt a turnaround or to liquidate the organization. Most organizations move along a continuum. At one end is the custodial environment of a relatively healthy or ...

Factors Are in It for the Long Haul

The current recession, which is the worst economic downturn since the Depression, has had a disastrous impact on the trucking industry. Small trucking companies are slowly disappearing -- either closing up shop or consolidating with larger firms. Margins are being cut to gain a competitive edge, and small truckers often find themselves without the guarantee of a return load. That's the bad news. The good news is industry insiders believe that trucking will be one of the first industries to se...

The Brush-Back Pitch: Lenders Dust Off Their Playbooks

As lenders dust off their playbooks, 2010 could be a comeback year for commercial finance. With pricing and structures returning to normal, new players are entering the field, and the legacy asset-based lending (ABL) teams are adding to their benches. The brush-back pitch for some commercial finance players could be over-aggressiveness. The most robust part of the ABL market is the $50 million-to-$300 million segment, where the borrower has access to private equity, the high-yield market or t...

Tsl Profile: Primary Funding Corporation

Having moved her way up through the factoring industry, Pat Burns, president of Primary Funding Corp, can attest to how the factoring and asset-based lending industries have evolved over the years. Burns discovered that starting a new career would be difficult financially. So, in 1983, formed a partnership with Tony Kinninger of Orange Commercial Credit and started San Diego Commercial Finance. Now the sole owner of Primary Funding, a discount factor, Burns said the company tries hard to keep...

Factors and Purchase Order Financiers: Learning to Live Together

When factors and purchase order financiers encounter one another on a transaction, they must respect one another. The factor must not handcuff the purchase order financier from being able to follow through and do their job. The factor should recognize that the PF is helping their joint client build their business, which can translate into more opportunity for the factor. Business owners are turning to factors more than ever before. Purchase order financiers can enable factors to get more deal...

Across the Pond: The Uk and Ireland Scene

Cobbling together a diverse set of cultures and economic profiles of varying maturity and saddling them all with an interest rate to suit a Germany imbued with a strict sense of fiscal probity following the 1920s hyperinflation experience was always going to represent a triumph of political, wishful thinking over market pragmatism. Spain and Ireland saw huge property booms as low interest rates dictated by the European Central bank encouraged speculation and, in so doing, emphasized the euro'...

Stuart Brister: Helping Wells Fargo Factor Into the Equation

In an interview, Stuart Brister, president of the Trade Capital division of Wells Fargo Capital Finance, discussed the Wachovia acquisition, being a bank-owned factor and China. According to Brister, there could be challenges for a bank-owned factor with a parent company that doesn't understand factoring. However, Wells Fargo has a good understanding of asset-based lending and factoring and is committed to the business and our growth. He also said that knowing the market in China very well, t...

Top Five Most Popular Articles in Tsl Jan/Feb Digital Edition

Merger: Opinions

According to Tracy Eden, national marketing director, Commercial Finance Group, Atlanta, GA, they're not seeing clients from new industries as much as they are businesses that previously wouldn't have considered asset-based lending, but are now, due to difficulty in obtaining traditional bank financing. Val Goldstein, EVP, Coface Credit Management North America Inc, New York, NY, said that Coface started factoring in the US and Canada with the intention of marketing to nontraditional customer...

Among Cfa Members

Among Cfa Education Foundation Members

Chapter News

Book Defines and Simplifies Alternatives to Chapter 11 for Both Financial and Legal Advisors

Strategic Alternatives for Distressed Business, by Jonathan P. Friedland, is reviewed.

Cfa Committee Chair Profiles

Calendar

Legal Notes: The Legal Side of Abl

This article presents selected cases addressing the legal effect of a term sheet for a loan and the reinstatement of a pre-petition secured credit facility as part of a Chapter 11 plan of reorganization. In addition, the authors have provided a report on the progress of the Intelectual Property Supplement to the UNCITRAL Legislative Guide on Secured Transactions. In the Amcan Holdings Inc v. Canadian Imperial Bank of Commerce, the appellate court noted that determination of whether a contract...

Revolver: Tsl Guest Column

In today's volatile and changing economy increased sales alone are not the recipe for success. People see increasing bankruptcies, layoffs, corporate losses, tight liquidity, and capital deterioration presenting unprecedented challenges for business owners. Accordingly, the author has formulated the following Ten Client Commandments to help manage your business in this volatile economy: 1. Solidify financing relationships. 2. Review customer base. 3. Look at concentration. 4. Look at credit t...