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Written by Kent Harlan, CPA
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 A variety of new and nontraditional players are entering the asset-based lending market, resulting in good news for companies looking to secure financing. They range from hedge funds looking for stronger returns on their investments to large, cash-rich companies that are seeking to expand into a new line of business. All of these entrants are making waves in the market. The "enormous supply of capital and liquidity in the market" are further cranking up the competition, according to James G. Connolly, president of Bank of America Business Capital in Glastonbury, Conn. "In fact, there is more supply than demand. It is a good time for companies to put financing in place if they look at all of their options." |
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Written by Kent Harlan, CPA
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by Kent Harlan, CPA  (Published in the Springfield Business Journal, December 20, 2004) Many CFOs and other finance executives view asset based loans as a financing outlet of last resort. While that may sometimes be the case, such a view is a one-dimensional perspective. But as companies confront a tight credit market coupled with lower than expected results, many CFOs are viewing asset based lending as a viable option in the financing tool kit. Even successful companies with strong banking relationships can quickly fall out of favor with lenders and lose access to unsecured financing, especially if theyve shown recent losses. |
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