Article Archive — Funding/Financing
Community Banks
Advocacy Will Be Key to Encouraging Community Banks to Enter the Equipment Funding Arena
In the process of completing a recent research study grant on community banks and the equipment finance/leasing industry, Scott Wheeler says it became increasingly obvious that members of the leasing community need to increase their advocacy efforts to attract new participants into the industry.
Read more...
2012 CFO Outlook:
A Survey of What Finance Chiefs Expect
Lower economic confidence and more concerns, but U.S. financial executives staying the course.
Read more...
Changing Times Require New Funding Approaches
As the economy inches toward recovery, we asked four independent equipment finance leaders to comment on, among other things, the new realities and practices required in running a successful operation. Central to their success is their ability to create new approaches on the one hand and to adhere to strict, time-honored practices on the other.
Read more...
What’s Hot in the Commercial Finance Buying Market
Three Trends to Watch
Commercial debt buyers have fared well as companies have looked for ways to create much-needed liquidity and they have proven they are more than capable of filling a liquidity void. But will the trend hold once the economy recovers and the capital markets operate efficiently once more?
Read more...
Funding Sources Speak Out on Doing Business in the Post-Recessionary Slog
Three years into the worst economy in more than half a century, leasing executives on both sides of the funding divide are finding the old way of doing business is no longer relevant. We asked three leading funders to tell us how they’ve adapted.
Read more...
Making a Case for Leasing & Financing Independents
In this issue, we decided to chat with Bob Rinaldi, former president of National City Commercial Capital Company (NC4) Canada, and executive vice president of NC4. Here he describes what he feels is the current economic climate for the equipment leasing and financing industry and what independent lessors should be considering now that the tide is starting to turn for the better.
Read more...
Looking for a Funding Partner?
What You Should Know About Your Company Before Finding a New Funding Source
Preparing to negotiate with existing funding sources or to solicit new ones, should be treated as the most significant undertaking in your company’s existence. Even the most consistent performers are being held to a much higher standard of performance and transparency. The expectations from sources of capital extend beyond financial strength and into detailed operational assessments.
Read more...
State of Funding
A Story of Have-Nots and Have-Nots
Where we are today? In finance circles it is a story of the have-nots and have-nots. As we surveyed the marketplace to find out who is lending to leasing companies or investing in lessors, we had a difficult time determining who’s doing what these days.
Read more...
Funding Issues?
It Might Be Time to Buy or Merge With a Bank
It’s a frustrating market to say the least: small- and medium-sized businesses have never been in such dire need of financing, yet the lenders that serve that purpose don’t have the funding to provide it. Competitors have exited the market and will continue to do so. What’s left is a market with substantial opportunity to fund equipment purchases by borrowers with pristine credit — if only there was liquidity for equipment finance companies.
Read more...
Funding Sources Adjust to Tightening Credit Markets
With the U.S. economy suffering through its worst recession in more than half a century and access to credit drying up, funding sources have suddenly become the people in the room everyone wants to talk to. For our annual Funding Source Issue, we asked five leasing industry lenders to weigh in on the challenges and responsibilities of funding in a down market.
Read more...
More Thought$ on Funding
Robert P. Rinek Managing Director, Piper Jaffray & Co. Monitor: Is this liquidity crunch different from others? Robert Rinek: It’s hard to know, because we haven’t seen the full impact of the credit cycle being played out. The magnitude of the problem will be directly correlated to the ripple effect from the subprime mess; what [...]
Read more...Date Posted October 1, 2008
Funding Strategies to Meet Today’s Liquidity Challenges
Every quarter we are seeing the effects of a shaken economy — whether from rapidly decreasing earnings reports or in millions of dollars in write-downs. But how is the economy affecting independent financing companies? How have they had to change their lending practices?
Read more...
Warehouse Credit Lines: How Does the Current Crunch Affect Basic Funding Options?
In these times of uncertainty with banks becoming tighter with money and terms, one has to wonder the effect this will have on the basic tenants of leasing, including warehouse lines of credit. OFC Capital’s Peter Eaton discusses the future of lessor funding.
Read more...
Funding Sources Combat Credit Woes By Performing Stricter Due Diligence, Solidifying Relationships With Brokers
With the “irrational exuberance” of 2007 now long gone, yesterday’s excess liquidity has given way to a desert landscape of collapsed deals and skittish investors. But in this year’s Monitor Funding Source Roundtable participants say that at least where equipment finance is concerned — there’s still plenty of liquidity to go around; the trick is where to look for it.
Read more...
Funding in 2007
When the Monitor called and asked me to comment on the recent conditions in the funding side of the business, little did I know that in about 20 minutes I would be going under the knife. I was grappling with what I would say first, and was soon confronted with phrases like “retinal tear,” followed [...]
Read more...Date Posted October 1, 2007
Is Alternative Financing Taking Over?
A Fresh Look at Common Forms of Debt Leverage
Participants in the specialized lending markets are talking about the growing dominance of hedge funds and other alternative sources of capital. Many believe this is a misconception. Diversity Capital’s David D’Antonio reviews the common forms of debt leverage in the markets and how readily available they are.
Read more...
Debt or Equity: How the Classification of Hybrid Securities Can Turn a Good Company Bad
A company that appears to be flying high in the black might actually be neck deep in the red if its financing relies heavily on “hybrid” securities. Issuances of hybrid securities — financial instruments that have qualities of both debt and equity — are on the rise. This article reviews three cases that may guide individuals charged with directing a company’s operations to determine whether hybrid securities should be treated as debt or equity.
Read more...
Funding Sources Get Down to ‘Brass Tacks’
In 2006, America’s financial industry was riding the wave of economic boom in a market flooded with capital. Though it’s impossible to predict exactly what course the economy will take, one way to start looking is to follow the money. Each year, the Monitor asks leading funding sources to offer their take on the past year, as well as what the next 12 months promise.
Read more...
