CLR
Showing 193–208 of 345 results
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Back to Basics – Are your borrowers overlooking tax deductions?
Year End 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 435
Abstract: Year end is a good time to revisit tax-saving opportunities, such as the Domestic Production Activities Deduction (DPAD), under Internal Revenue Code Section 199. Borrowers who are unaware of the DPAD — or intimidated by its perceived complexity — could be leaving money on the table. This article discusses which businesses may qualify for the DPAD and which don’t, along with the DPAD’s limitations and mechanics.
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Customer growth – Evolution by design
Year End 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 600
Abstract: Borrowers seeking to grow their business have several expansion strategies from which to choose. And lenders should analyze these tactics carefully. This article discusses such options as internal growth, buying another company, and entering into a joint venture. It also looks at the benefits and limitations inherent in a company’s projected financial statements.
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Give the CCC a chance – There’s more than one way to measure liquidity
Year End 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 575
Abstract: Many loan covenants include a minimum liquidity threshold based on static metrics, such as the current or quick ratio. Banks have learned the hard way that a significant decline in liquidity can foreshadow bankruptcy. But few lenders consider, or even know about, the cash conversion cycle (CCC), which factors timing into the liquidity equation. This article discusses the most common liquidity metrics and how, when used with these measures, the CCC offers greater insight into a borrower’s liquidity position over time.
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What private company GAAP means to you
Year End 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 877
Abstract: This summer, the Financial Accounting Standards Board proposed some revisions to Generally Accepted Accounting Principles to accommodate the needs of private businesses and their stakeholders. The proposals target four specific areas: intangible asset recognition, amortization and impairment of goodwill, certain types of interest rate swaps, and variable interest entities. This article shows how these proposals might affect private borrowers’ financial statements. A sidebar discusses the AICPA’s financial reporting framework that small private firms with relatively simple business models can use right now.
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Back to Basics – Are your borrowers protected against cybercrime?
October / November 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 436
Abstract: As the Internet grows as a retail channel, so too grows the risk of Internet fraud. Lenders should be aware of the latest scams that could affect their customers and impair debt service. This article discusses common online fraud tactics and how to identify high-risk activities.
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Q&A: “Percentage of completion”
October / November 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 593
Abstract: Revenues from projects that span more than one calendar year are typically recorded under the percentage of completion method, according to Generally Accepted Accounting Principles. This article discusses what lenders need to know about this accounting method to better evaluate their borrowers’ performance. It answers questions about who uses this method, how it works, and how it’s different from the revenue recognition principle.
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Lenders can help with a changing of the guard
October / November 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 639
Abstract: At some point every business outgrows its first-generation entrepreneurs. In order to recognize when it’s time to upgrade management, lenders need to visit the borrower’s premises to get acquainted with the people behind the numbers. Should a family member take over the reins, or would the company be better off with someone else — an internal person, or someone from the outside? As this article explains, lenders and accountants can introduce borrowers to their networks of business contacts and render sound advice.
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Don’t forget repairs and maintenance – Skimping on routine upkeep ultimately costs more
October / November 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 865
Abstract: Fixed assets are often pledged as loan collateral. So lenders have a vested interest in making sure they’re adequately maintained. This article discusses how to get a closer look at how clients keep house, starting with the fixed asset register and moving on to the formal repairs and maintenance schedule. It also looks at due diligence and benchmarking, while a sidebar discusses when it’s smarter to replace a broken or worn asset, rather than to repair or maintain it.
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Back to Basics – Untangling the web of fixed assets and depreciation expense
August / September 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 441
Abstract: Fixed assets are a common source of loan collateral. But how much do lenders really know about accounting for property, plant and equipment? If they accept fixed assets at face value, they’re likely to make imprudent decisions about the collateral values, profitability and overall creditworthiness. This article explains that FASB and IRS rules permit some leeway when deciding whether to capitalize or expense a purchase, as well as in choosing depreciation methods. These choices can have a large effect on a balance sheet.
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Know your borrowers’ fraud risk profile
August / September 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 706
Abstract: Customers face two types of fraud risks: employees who misappropriate assets and those who “cook the books” to make the company appear healthier than it is. This article offers a fraud checklist that enables lenders to create their own customized fraud risk profile for each borrower.
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Cross-collateralization strategy raises concerns
August / September 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 553
Abstract: Commercial lenders cross-collateralize loans to reduce risks. But accounting concerns and debt restructuring issues may emerge when using multiple properties to secure a loan associated with one property. This article discusses a study that illustrates the potential impact of cross-collateralization on loans’ nonaccrual status. The article also notes that some banks use cross-collateralization in an attempt to avoid troubled debt restructuring (TDR) status on reworked loans.
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What’s the plan? Make sure your customers aren’t driving with blinders
August / September 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 814
Abstract: In many ways, operating a business is like venturing off on a road trip. But it’s surprising how many small and midsize companies have no road map to guide them. Detailed business plans can improve the odds that a borrower will arrive at its destination on time and on budget. This article looks at the essential components of a business plan and how they can help lenders assess whether a borrower’s plan appears realistic. A sidebar explains why the most relevant section from a lender’s perspective is the management team description.
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Back to Basics – Divide and conquer with a separate legal entity
June / July 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 425
Abstract: If a borrower owns its real estate, possesses significant fixed assets or operates several lines of business, its bank might be exposed to unnecessary risk. That’s why it’s important for lenders to review their loan portfolios for borrowers with certain traits. This article discusses how creating separate legal entities can be an effective tool to minimize risk.
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4 easy ways to retain borrowers
June / July 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 534
Abstract: In today’s competitive lending market, financial institutions risk losing borrowers to more assertive lenders who promise lower interest rates, higher credit lines and faster closing dates. And high customer turnover can cause a loan officer to look bad to senior bank executives. This article describes four ways that lenders can improve their relationships with customers.
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Protecting yourself against “deepening insolvency”
June / July 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 707
Abstract: Lenders will try to do what they can to help their clients succeed. But financial institutions could be held accountable by a customer’s creditors under the legal theory of “deepening insolvency” if the customer seeks bankruptcy protection. In deepening insolvency, a struggling company takes on additional debt or equity financing, thereby compounding its insolvency and significantly impairing its ability to repay creditors. This article looks at the history of deepening insolvency claims and what lenders can do to protect themselves.
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Ready, set, lend – Which startups are worth the risk?
June / July 2013
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 682
Abstract: Startups are more likely to fail than not, but there are a few bright spots that present lucrative lending opportunities for the diligent, adventurous lender. This article discusses how to evaluate a startup, including its management quality, and looks at the factors that can improve a startup’s odds. A sidebar shows how employee stock options can be one such factor.