‘To Own or Not to Own’ – that is the question. We've all heard the business owners’ rationalization for owning the building where their business operates – “My business is going to pay rent to someone, why shouldn’t it be me?” “We don’t want our business to be beholden to a landlord, we want to [...]
Do you believe in the adage "History repeats itself”? There are a number of examples supporting this – Economic cycles, stock market fluctuations, music trends, clothing styles (let’s hope that’s not the case for the 1980s!!), and the list goes on. We believe that history does repeat itself, especially when it comes to challenged loan relationships in [...]
Q. How many different combinations can you make change for a $1 bill? A. 293 Ways to make change for $1 Here are some additional interesting money facts from our October Newsletter: One (1) US Dollar bill weighs 1 gram. ($1,000,000 in singles weighs over 1 ton; and a suitcase containing $1,000,000 in $100 bills [...]
In May 2013, we purchased an under-performing loan relationship (RLOC and term loan) from a large bank. The borrower historically had low leverage and a long history of profitable operations. However, the business experienced a cash flow strain from increased leverage, negative working capital and operating losses over the 12 months preceding our note purchase. [...]
Answer: There are 40 squares.
C&I Lending is approaching 2008-09 levels, tightest levels ever recorded, which historically results in a "Flight to Quality". Two (2) important takeaways: 1. Banks will/should 'protect' their best lending relationships - those borrowers with self-sustaining capital and liquidity and an inherent 'value-offering'; and 2. For under-performing borrowers, the probability of an "Exit" via a refinance [...]
In the 1st half of 2020, a surprising majority of distressed loan relationships we’ve reviewed involved borrowers whose optimistic expansion plans pre-COVID resulted in significant increases in fixed expenses and leverage (financial and operational). These debt-funded investments – whether it's equipment purchases, strategic acquisitions or real estate expansion – were intended to facilitate forecasted growth [...]
