TSL Feature Articles
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Innovation is Key to Survival for Factors
The CEO of TBS Factoring discusses the importance of innovation in factoring and how she applies the lessons of the past to her current role.
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Interview with Ryan Jaskiewicz of 12five Capital, LLC
Ryan Jaskiewicz is CEO of 12five Capital, LLC. He started 12five Capital in early 2006 at the age of 23. Jaskiewicz attended University of Illinois at Chicago where he received a bachelor of arts in political science.
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CARES Act Paycheck Protection Loan Program: From the Secured Lender Perspective
Editor's Note: SFNet’s Advocacy Committee is prioritizing initiatives to support our bank, non-bank and service provider constituents. A key component of this is analyzing the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was enacted on March 27, for specific opportunities to address the needs of our members and borrowers across asset classes and industries, as the focus now turns to implementation.
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Success By Lenders Working Together
Forrest Gump said, “Life is like a box of chocolates; you never know what you are going to get.” Partnering with other lenders can be similar. You don’t know what you are going to get if you jump into partnerships without doing your due diligence and establishing alliances with the best partners.
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Interagency Guidance for Financial Institutions on Coronavirus Disease-Related Loan Modifications
On Sunday night, March 22, 2020, the federal banking agencies (OCC, FDIC, NCUA, Federal Reserve), the Consumer Financial Protection Bureau and the State Conference of Bank Supervisors issued an Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus.
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Top 5 Invoice Finance Frauds
Aaron Hughes looks at some of the ways directors might misuse their invoice finance facilities and how lenders can stem any potential losses.
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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.
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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.
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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.
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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?
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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
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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.
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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.
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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.
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Syndicated ABL Volume up in 2019, Deal Count Down
Refinitiv’s director of analytics shares with readers the latest data surrounding the syndicated market.
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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.
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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.
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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.
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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.
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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.
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
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Too Little. Too Late. Too Much. Inventory Management Amid Ongoing Supply Chain Disruption
Aug 22, 2022
As recent years have demonstrated, a variety of events, from a once-in-a-lifetime worldwide health crisis like a pandemic to a regional conflict like the Russian invasion of Ukraine to long-planned political changes such as Brexit, can easily interrupt global supply chains. These recent events resulted in three phases of supply chain disruptions.
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Interview with Mark Cuccinello, Member of SFNet’s Diversity, Equity & Inclusiveness Committee
Aug 8, 2022
Mark Cuccinello is a senior ABL originator for J.P. Morgan Commercial Banking, where he is responsible for providing asset-based loans to middle market companies. Mark has been with the bank for 17 years and has more than 25 years of asset-based lending experience. Mark resides in New Jersey with his family.
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Ready, set, mentor!
Aug 16, 2022The Secured Finance Foundation, in conjunction with SFNet’s Diversity, Equity and Inclusion Committee, developed and launched a Mentoring Program that provides the next generation access to the knowledge and expertise of the most talented and respected executives in the secured finance industry. The mentoring initiative was created to serve the secured finance community by bridging the gap between established veterans and those new to their careers. By focusing on inclusivity, SFNet hopes to offer a missing component in its members’ professional trajectories.
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How are inventory levels impacting cash flow and performance?
Aug 15, 2022Since the COVID-19 shutdowns, discussions about supply chain and inventory levels have focused on the need to build inventories to offset supply chain risk. Companies have replaced just in time inventory approaches with higher inventory levels to offset the supply chain problems. In addition to building inventory quantity levels, the per unit value of the inventory has been increasing as evidenced by inflation at 40-year highs. The June CPI was 9.1% and the June PPI was 11.3%.
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Interview with Terry Keating, CEO of Access Capital
Aug 9, 2022
In June, Access Capital, a leading independent lender to the staffing industry, announced it named Terry Keating chief executive officer. Recently TSL Express’ senior editor met with Keating to discuss how his career trajectory helped prepare him for this role, his goals and responding to some of the challenges the industry is experiencing.
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SFNet International Finance & Development Committee Launches ABL Cross-Border Database
Jul 28, 2022
SFNet's International Finance and Development Committee has recently announced the launch of its ABL Cross-Border Database. The database is a comprehensive compilation of information from publicly available credit agreements in large cross-border asset-based loans. The database currently includes 61 transactions, representing all ABL cross-border transactions closed and filed with the SEC from 2011 to present (excluding those transactions involving only the United States and Canada), and will be updated regularly to cover new transactions.
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SFNet's YoPro Leadership Summit Is Back in Person
Jul 26, 2022After two years of virtual and hybrid conferences, SFNet's YoPro Leadership Summit returns in person August 3 to 4, 2022 at King & Spalding LLP in Atlanta, GA. Young professionals of the secured finance industry will hear from industry leaders, connect with peers, and discover together how to find success in new, flexible work structures. This year’s speakers and panelists will provide a market perspective, share an e-commerce update, and discuss diversity, equity and inclusiveness initiatives. In addition, attendees will have the opportunity to hear from industry titans and former SFNet 40 Under 40 Award winners. We’ll also have small-group networking sessions, icebreakers, group social activities and receptions in the evening.
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What Are the Top Cybersecurity Concerns for 2022?
Jul 18, 2022
With the second half of 2022 underway, it is a good time to evaluate cybersecurity issues and concerns. The cybersecurity front continues to be an area of significant risk for businesses. In this article we will explore recent trends, and specific industries at more risk of attack. For a perspective on the dollar impact, the largest payment in 2021 was a $40 million payment made by an insurance company. For a perspective on number of attacks, there is a cyber-attack every 11 seconds.
The National Cyber Security Alliance estimated that 60% of small businesses fail within six months of an attack.
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Mentoring or “Holding the door for those entering behind you”
Unless you’re the most junior person in your work environment, everyone should mentor their less-experienced team members. Helping them learn should be as natural an effort as holding the door for those entering a room behind you. These efforts will create experienced individuals with broad-based perspectives on how to approach their responsibilities within the secured lending industry. Leaders within SFNet member organizations generally agree there is a lack of “bench strength” in the secured lending industry. Greater preponderance of mentoring would tie junior people more to their organizations and to the industry as a whole.
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The Secured Finance Foundation: Helping to Advance the Future of Secured Finance
Sep 20, 2022The Secured Finance Foundation’s Corporate Giving Campaign, created to help prepare the next generation of leaders, provide essential data that drives smart business decisions, and invest in the communities of which our members are a part, will conclude on September 30.
As the secured finance industry continually grows and evolves, it takes knowledge, effort, and financial support for the Secured Finance Foundation (SFFound) to keep up with these changes and fulfill its mission. The Secured Finance Foundation encourages, facilitates, and supports education, innovation, and charitable works for the betterment of organizations and professionals who deliver and enable secured finance— and for the communities of which they are a part. Since it was founded 31 years ago, the Foundation has raised approximately $9.5 million to date.
In This Section
The Secured Lender
SFNet's Factoring & Supply Chain Finance And Great Places To Work Issue