tag:blogger.com,1999:blog-296703122024-03-06T12:01:59.656-08:00Show Me the MoneyProviding asset based financing solutions to growing companies. Call 310-344-2522 for a free consultation!Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.comBlogger337125tag:blogger.com,1999:blog-29670312.post-58365458153231602872018-05-29T17:38:00.000-07:002018-05-29T17:38:01.937-07:00SBA Loan for Long Beach's Newest Craft Brewery <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhE7arBmBTovqCstVQgnL-ktBHKuWWIXTxe9dmagzD6njQMbOc5eurZ0TjtJCkeOG8kFPjGRUN2QX9Ph0IJK-vxwK8v-vnpK9oVglAYS2aZ7dMEAa-kmc17z0jDB2vTTwzCXiNb/s1600/TMB+FB+Pic1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="315" data-original-width="851" height="144" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhE7arBmBTovqCstVQgnL-ktBHKuWWIXTxe9dmagzD6njQMbOc5eurZ0TjtJCkeOG8kFPjGRUN2QX9Ph0IJK-vxwK8v-vnpK9oVglAYS2aZ7dMEAa-kmc17z0jDB2vTTwzCXiNb/s400/TMB+FB+Pic1.jpg" width="400" /></a>Congratulations to my client, <a href="http://www.trademarkbrewing.com/" target="_blank">Trademark Brewing</a>, and Sterling Steffen on the successful close of your SBA loan! Thanks for the opportunity to be of service! Looking forward to the grand opening!<br />
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Want more details about Trademark Brewery? Check out <a href="https://la.eater.com/2018/3/2/17072464/long-beachs-craft-brewery-trademark-brewing" target="_blank">Eater LA</a>!<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiB44yBMYp5npxA8EQAo6giejTbHUnvaVcTpI2taSyxWNlNJl5cDbLWyfuqmgPv7F5og4XmoC-V2MEd4gnB5bPFAwMfnOBmR4BUUuO4ASORtav-s1vG7ofviAqDBjgKsjXHtRGk/s1600/TMB+FB+Pic2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="720" data-original-width="960" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiB44yBMYp5npxA8EQAo6giejTbHUnvaVcTpI2taSyxWNlNJl5cDbLWyfuqmgPv7F5og4XmoC-V2MEd4gnB5bPFAwMfnOBmR4BUUuO4ASORtav-s1vG7ofviAqDBjgKsjXHtRGk/s400/TMB+FB+Pic2.jpg" width="400" /></a></div>
Are you a business who needs a business loan, equipment financing or working capital?<span style="mso-spacerun: yes;"> </span><a href="https://www.linkedin.com/in/marshalllebovits/" target="_blank">Marshall Lebovits</a> of Asset Based Funding Solutions has over 30 years of experience in the secured lending industry.<span style="mso-spacerun: yes;"> </span>He can be reached at (310) 344-2522 or via email at <a href="mailto:Marshall@Funding911.com">Marshall@Funding911.com</a>.<br />
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Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-29198766651634426572018-05-02T17:01:00.003-07:002018-05-02T17:10:52.040-07:00Why does a food truck lender ask about capital in reserve?When I’m talking to a food truck buyer, particularly a first-timer, I ask whether or not they have any capital in reserve. I need to know if something goes wrong they can still make their monthly loan payment.<br />
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They often respond “if I had any capital, I wouldn’t be coming to you for a loan!"<br />
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Here are two recent stories about food truck entrepreneurs who suffered the consequences of a fire or a blown engine.<br />
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http://www.newsobserver.com/living/article209872724.html<br />
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http://nooga.com/215767/rolling-js-food-truck-owner-launches-kickstarter-for-new-restaurant/#.WtYfKfRIsZk.twitter<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTwQ3dGk7HClp3mpY13EMpKbtQ39bB5qJUQDiA-3qY1s2smRPr-LOY0kui66Rp9DzuYU7LmFBsvZ1HCcW81ZoneCGl07dmE96gbmR8LfsD2czDUTGHtLJNqy92vKH3GJhR9VME/s1600/0010_Food2.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="437" data-original-width="940" height="183" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTwQ3dGk7HClp3mpY13EMpKbtQ39bB5qJUQDiA-3qY1s2smRPr-LOY0kui66Rp9DzuYU7LmFBsvZ1HCcW81ZoneCGl07dmE96gbmR8LfsD2czDUTGHtLJNqy92vKH3GJhR9VME/s400/0010_Food2.jpg" width="400" /></a>If you’re acting as a lender or lessor, you should make sure your operators have either capital in reserve or the right insurance coverages!<br />
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Need help with a food truck loan? Please let me know.<br />
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Are you a business who needs equipment financing or working capital?<span style="mso-spacerun: yes;"> </span><a href="https://www.linkedin.com/in/marshalllebovits/" target="_blank">Marshall Lebovits</a> of Asset Based Funding Solutions has over 30 years of experience in the secured lending industry.<span style="mso-spacerun: yes;"> </span>He can be reached at (310) 344-2522 or via email at <a href="mailto:Marshall@Funding911.com">Marshall@Funding911.com</a>.<br />
<br />Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-89713690650578911972018-02-26T19:07:00.000-08:002018-05-02T17:04:53.428-07:00Equipment Lease Line of Credit – Rates too Low to Mention!<br /><div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhx0XoywB1WMSnA-4d1Myvu401cp3Wob4rFaVEX1J3x5d3Bi5z2rAyvha3IUsjW5MX8yMW31KccsYkqLyQJCU1WjD8qXNZhGx_-ZVR4HxkXiykedvy3PgyKJXbRCnYu5ESsn3pI/s1600/Low+interest+rates+v1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="367" data-original-width="652" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhx0XoywB1WMSnA-4d1Myvu401cp3Wob4rFaVEX1J3x5d3Bi5z2rAyvha3IUsjW5MX8yMW31KccsYkqLyQJCU1WjD8qXNZhGx_-ZVR4HxkXiykedvy3PgyKJXbRCnYu5ESsn3pI/s320/Low+interest+rates+v1.jpg" width="320" /></a></div>
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A <a href="https://www.linkedin.com/pulse/equipment-lease-line-credit-rates-too-low-mention-marshall-lebovits/" target="_blank">major telecom services company</a> was recently referred to me
as they were unhappy with the service and lease rates they were receiving from
their existing leasing company.<o:p></o:p></div>
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After a quick review of their financials, I introduced them
to a major independent leasing company.</div>
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Within seven days, they received approval and accepted an offer for a $2
million lease line of credit to cover their 2018 IT equipment purchases.<span style="mso-spacerun: yes;"> </span>The lease line was structured with a fair
market value purchase option.<o:p></o:p></div>
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The CFO was pleased with a great solution that will enable
the company to better manage residual risk and equipment obsolescence.</div>
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<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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The rates? <span style="mso-spacerun: yes;"> </span>If I told
you, I would be in big trouble!<o:p></o:p></div>
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Are you a business who needs equipment financing or working
capital?<span style="mso-spacerun: yes;"> </span><a href="https://www.linkedin.com/in/marshalllebovits/" target="_blank">Marshall Lebovits</a> of Asset
Based Funding Solutions has over 30 years of experience in the secured lending
industry.<span style="mso-spacerun: yes;"> </span>He can be reached at (310)
344-2522 or via email at <a href="mailto:Marshall@Funding911.com">Marshall@Funding911.com</a>.<o:p></o:p></div>
Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-56215760736025407592017-02-01T08:41:00.000-08:002018-05-02T17:04:58.775-07:00Higher Sales and Improved Margins through Vendor Financing<div class="MsoNormal">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjDqIzuNPlHJOJ_rYVn2eS0ZwtAGbQdqnLgcG-qxRRL93WSz4BadZy5xgEamJ_lVfCddt9kbUbZhmQVycZWavPspzHlSQ3ocrdYlKRbM5Aq3Tqfok-lCa7N3T65ezIV9xJndqkP/s1600/Increase-sales-workshop-daytona.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="100" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjDqIzuNPlHJOJ_rYVn2eS0ZwtAGbQdqnLgcG-qxRRL93WSz4BadZy5xgEamJ_lVfCddt9kbUbZhmQVycZWavPspzHlSQ3ocrdYlKRbM5Aq3Tqfok-lCa7N3T65ezIV9xJndqkP/s200/Increase-sales-workshop-daytona.jpg" width="200" /></a><span style="font-family: Arial, Helvetica, sans-serif;">“We would be out of
business without vendor financing” according to the president of a distributor
of commercial strength and cardio equipment.
Almost 65 percent of this company’s revenues are generated utilizing a
vendor financing program implemented over ten years ago. <o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Vendor financing
programs provide manufacturers, distributors and dealers from a wide variety of
industries the capability to offer customers a convenient way to acquire their
products at the point of sale. A few of
the key benefits vendor financing provides include:</span></div>
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<li><span style="font-family: Arial, Helvetica, sans-serif;">Improved
vendor cash flow through pre-funding, or financing of the down payment, and reduced
receivables through collection of the balance upon delivery of the product</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Improved
margins and higher sales by focusing the customer on monthly payments instead
of price reductions</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">A
faster selling cycle – fewer worries about whether your customer has the money
in its capital budget or if they can (or will try to) find financing on their
own</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Transfer
of the financing risk to a third party through non-recourse programs</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">The
ability to open up new markets including selling your products</span></li>
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<span style="font-family: Arial, Helvetica, sans-serif;">With programs that
can provide financing in amounts as little as $5 thousand, vendor financing can
be implemented to cover most asset types and a variety of customer credit
profiles including start-ups and early stage companies. For amounts up to $100 thousand (and higher),
many financings can be approved in as little as one hour after your customer
completes a one page application. For
larger transactions, approvals can be obtained as quickly as four hours
following the submission of financial statements and tax returns. Lease terms can extend from 12 to 60 months
for equipment with long useful lives sold to qualifying credits.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">According to one manufacturer
of equipment, the flexibility, creativity and extraordinary support it enjoys
through its vendor financing program provides it with a competitive advantage. Its vice president of sales firmly believes
that choosing the right programs and leasing company can be the difference in
winning a sales competition. A few questions
to ask in selecting the best leasing company for your business include:<o:p></o:p></span></div>
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<ul>
<li><span style="text-indent: -16.8pt;"><span style="font-family: Arial, Helvetica, sans-serif;">Flexibility
– Can the financier fund my A, B & C credits? Can soft costs be included in the financing
amount? Will all credits be financed
without recourse to the vendor?</span></span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Minimums
and maximums – How small and how large of a deal can the financier fund? Any limitations on how much credit it can
extend to any given buyer? Any overall
minimum or maximum volume requirements to create a program for your company?</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Creativity
– How many different programs structures and end user offerings can the
financier provide? Will the financier
create unique programs to meet the special needs of certain customers? </span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Risk
Management – Will the financier help you evaluate the creditworthiness of
prospective customers?</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Service
– What levels of support do you require for sales, marketing, administration
and deal structuring? Do your customers
require a personal touch or will a highly automated system be a better fit with
your sales methods?</span></li>
</ul>
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<span style="font-family: Arial, Helvetica, sans-serif;">If you can
visualize your company as a one-stop solution provider to your customer’s needs
through having the ability to offer fast and easy equipment financing, then
vendor financing may provide you with new and profitable opportunities. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><i><b>Are you a small or medium sized manufacturer or distributor who needs assistance with a vendor financing program? <a href="https://www.linkedin.com/in/marshalllebovits" target="_blank">Marshall Lebovits</a> of Asset Based Funding Solutions has over 30 years of experience in the secured financing industry and creates vendor financing solutions with <a href="http://www.baycap.cnet/" target="_blank">Baycap</a>. He can be reached at (310) 344-2522 or via email at Marshall@Funding911.com.</b></i></span></div>
Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-51110875693463329122016-10-31T14:15:00.000-07:002016-10-31T14:15:04.163-07:00Follow the Twitter Feed for @Funding911<span style="background-color: white; color: #8899a6; font-family: "Helvetica Neue", sans-serif; font-size: 12px; text-align: center; white-space: nowrap;"><a class="twitter-timeline" href="https://twitter.com/Funding911">Tweets by Funding911</a> <script async="" charset="utf-8" src="//platform.twitter.com/widgets.js"></script></span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-22029823978227464882016-02-10T12:06:00.000-08:002016-08-10T13:58:42.445-07:00Back in the Saddle…Again<br />
<span style="font-family: "arial" , "helvetica" , sans-serif;">After almost six years in commercial banking, I have returned to advising growing businesses throughout the USA on a wide variety of asset based funding solutions.</span><br />
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<span style="font-family: "arial" , "helvetica" , sans-serif;">Companies who can benefit from my services are often non-bankable credits who lack access to capital for reasons including short time in business, hyper-growth sales, weak cash flow and highly leveraged balance sheets. These companies will typically have revenues of $500 thousand to $30 million and will have B2B accounts receivable, inventory and equipment that can be offered to a lender as collateral for repayment of a loan.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">If your business has receivables, inventory and receivables and needs over $50 thousand of financing, please contact me at 310-344-2522.</span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.comtag:blogger.com,1999:blog-29670312.post-62448450415034891312010-03-12T10:29:00.000-08:002010-03-12T11:07:13.870-08:00Lunch Special of the Day<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJDj0B5OfxB5xaBVIZ5aiMuEV16cr3Lm2EBTEWRsOttqpQXHxtmH0EX5m-jYf_y48GNHGJs3CMJ3DiIdgKFKewOxl10Cd9B5KJHF98NzKDhdu3tfn9MCg2oX9lnt-ecdIekz1y/s1600-h/Luke.jpg"><img style="MARGIN: 0px 0px 10px 10px; WIDTH: 140px; FLOAT: right; HEIGHT: 200px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5447821000800017554" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJDj0B5OfxB5xaBVIZ5aiMuEV16cr3Lm2EBTEWRsOttqpQXHxtmH0EX5m-jYf_y48GNHGJs3CMJ3DiIdgKFKewOxl10Cd9B5KJHF98NzKDhdu3tfn9MCg2oX9lnt-ecdIekz1y/s200/Luke.jpg" /></a>A residential foreclosure contractor hired by <a href="http://marshall-showmethemoney.blogspot.com/2009/09/do-you-really-want-to-be-banker-of-year.html">Bank of America</a> reportedly not only padlocked the wrong house, but confiscated the home owner's pet parrot, <a href="http://online.wsj.com/article/SB10001424052748704655004575113872190094934.html?mod=WSJ_hps_sections_news">Luke</a>.<br /><div><div><div></div><br /><div>Earlier this week, <a href="http://dealbook.blogs.nytimes.com/2010/03/11/bofa-under-pressure-to-shrink-report-says/?emc=eta1#comment-373185">The New York Times</a> DealBook section reported that Bank of America has been instructed to shrink as regulators focus on banks that "are too big to fail".<br /><br />One reader not only rejected Bank of America's denial of the guidance, but commented on the "parrot-napping" as well.<br /></div><blockquote>In an unrelated cost savings move, Bank of America has announced that any pets seized in a property foreclosure action will, in the future, be served on the lunch menu in the employees’ cafeteria.<br /><br />— MJA </blockquote><div>By the way, a traumatized Luke was eventually returned to his owner by the contractor.<br /><br />Need help finding the right lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : <a title="Bank of America" href="http://www.technorati.com/tags/Bank+of+America">Bank of America</a> , <a title="too big to fail" href="http://www.technorati.com/tags/too+big+to+fail">too big to fail</a></div></span></div></div>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-78397440664823114972010-02-24T09:23:00.000-08:002010-02-24T10:06:26.152-08:00Bank Lending - Sharpest Decline Since 1942<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMM4QHVqgKmM0VV4nmvlxESXRBTc743jaMURkhcL1uyUhyphenhyphenxqf15bzgZO0jQU4o_CCAOAqNvGfFazlU29597JSey4SQ47uBpfyTVvcM-KT1wxr4yKtog5xYH0VA49eMxRQ1x4-i/s1600-h/Bernanke.jpg"><img style="MARGIN: 0px 0px 10px 10px; WIDTH: 220px; FLOAT: right; HEIGHT: 320px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5441870725831881762" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMM4QHVqgKmM0VV4nmvlxESXRBTc743jaMURkhcL1uyUhyphenhyphenxqf15bzgZO0jQU4o_CCAOAqNvGfFazlU29597JSey4SQ47uBpfyTVvcM-KT1wxr4yKtog5xYH0VA49eMxRQ1x4-i/s320/Bernanke.jpg" /></a>Shocker! U.S. banks last year posted their sharpest <a href="http://online.wsj.com/article/SB10001424052748704188104575083332005461558.html?mod=WSJ_hps_LEFTWhatsNews">decline in lending</a> since 1942 according to today's Wall Street Journal (subscription required).<br /><br />I'm trying to figure out why this article was front page headline worthy for The Wall Street Journal no less. It's <a href="http://marshall-showmethemoney.blogspot.com/2009/11/business-lending-down-six-percent.html">old news</a>.<br /><br />Senior bank lending officers have been reporting for two years about tightening credit. In fact, they tightened credit so much, they <a href="http://www.federalreserve.gov/boarddocs/snloansurvey/201002/default.htm">can't tighten any more</a>.<br /><br />Many banks are still amongst the walking wounded due to troubled <a href="http://marshall-showmethemoney.blogspot.com/2009/10/commercial-real-estate-more-pain-ahead.html">commercial real estate loan </a>portfolios. Yesterday, the <a href="http://www.fdic.gov/news/news/press/2010/pr10036.html">FDIC</a> announced its problem bank list hit a <a href="http://money.cnn.com/2010/02/23/news/companies/fdic_list/index.htm?hpt=T2">16 year high</a> of 702 troubled institutions. Many of these banks will likely fail and others will be <a href="http://marshall-showmethemoney.blogspot.com/2009/08/two-kinds-of-pain-for-commercial-real.html">unable to lend</a> in support of an economic recovery for a long time to come. The FDIC shuttered 140 banks in 2009 and 20 banks year-to-date 2010.<br /><br />In the meantime, the <a href="http://www.prnewswire.com/news-releases/commercial-finance-association-reports-stability-among-asset-based-lenders-85036372.html">Commercial Finance Association</a> (CFA) just released its Quarterly Asset-Based Lending Index, Q4 2009, revealing continued stability and signs that U.S. businesses are seeking alternative sources of stable funding from non-bank, <a href="http://marshall-showmethemoney.blogspot.com/2010/02/asset-based-lending-grows.html">asset-based lenders</a>. In the fourth quarter of 2009, total committed credit lines grew by 1.2 percent among asset-based lenders, while 50 percent of respondents reported an increase in new credit commitments.<br /><br />By the way, Harry Reid's stripped down jobs bill just stripped out additional funding for <a href="http://marshall-showmethemoney.blogspot.com/2009/10/5-million-sba-loans-if-your-name-is-joe.html">SBA small business loans</a>. The original $85 billion "jobs" bill included additional funding for the <a href="http://marshall-showmethemoney.blogspot.com/2009/09/credit-crunch-officially-over.html">SBA</a> to continue offering small businesses enhanced loans guarantees and elimination of guarantee fees. The <a href="http://www.sba.gov/idc/groups/public/documents/sba_homepage/news_release_10-04.pdf">SBA</a> just exhausted its $855 million of stimulus funds which it claims resulted in over $20 billion of loans to small businesses in the last 12 months.<br /><br />Notwithstanding all of the backwards looking news, I am seeing the green shoots of recovery. A couple of very large banks may be feeling the populist pressure to pump up lending and are adding to their lending teams. Even <a href="http://www.investquest.com/iq/h/hban/ne/news/hban021110.htm">Huntington Bank</a>, notwithstanding five consecutive quarters of losses, has announced it is doubling its annual small business lending and has announced it will originate $4 billion of new loans in the next three years.<br /><br />Need help finding the right lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : <a title="small business" href="http://www.technorati.com/tags/small+business">small business</a> , <a title="bank loans" href="http://www.technorati.com/tags/bank+loans">bank loans</a> , <a title="SBA loans" href="http://www.technorati.com/tags/SBA+loans">SBA loans</a> , <a title="asset based loans" href="http://www.technorati.com/tags/asset+based+loans">asset based loans</a> , <a title="Commercial Finance Association" href="http://www.technorati.com/tags/Commercial+Finance+Association">Commercial Finance Association</a> , <a title="Huntington Bank" href="http://www.technorati.com/tags/Huntington+Bank">Huntington Bank</a><br /><span style="font-size:78%;"></span><br /></span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-86617233092607717292010-02-04T15:02:00.001-08:002010-02-04T15:55:32.780-08:00Asset Based Lending Grows<a href="http://marshall-showmethemoney.blogspot.com/2009/06/more-distributors-and-manufacturers.html"><img style="MARGIN: 0px 0px 10px 10px; WIDTH: 200px; FLOAT: right; HEIGHT: 150px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5434538721297932114" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJX5397YwdZ4LxVGajv7cMX7A0XA_0hIhyphenhyphenw2cTEleNoYmfYQBVR09fG1inFCpzEnk-GWxdOaDF4KUKjLxlSm2nvSm1KC_GfRcqrQI8K-P4RvLqU5_ADGXqDnvFctPssI97yKi0/s200/Ben+Bernanke.jpg" />Asset based lenders</a> have stepped up to fill the <a href="http://marshall-showmethemoney.blogspot.com/2009/11/business-lending-down-six-percent.html">capital gap</a> caused by the credit crunch for borrowers both large and small according to <a href="http://online.wsj.com/article/SB20001424052748704878904575031640396411182.html#mod%3Dtodays_us_section_b%26articleTabs%3Darticle">The Wall Street Journal</a> (subscription required).<br /><br />According the Journal, <a href="http://marshall-showmethemoney.blogspot.com/2009/06/bare-knuckle-asset-based-lending.html">asset based lending</a> may have increased by double digits in 2009 after an 8.3 percent increase in 2008. Given the article was focused on small business, it would have been more interesting had the Journal been able to learn the percentage growth of asset based lending for deal size less than $10 million.<br /><br />The Journal notes that drawbacks of asset based loans include relatively <a href="http://marshall-showmethemoney.blogspot.com/2009/05/interest-expense-reduced-by-over-50.html">high interest rates</a>. Asset based loans can range as high as 35-40 percent per annum when a borrower is using <a href="http://marshall-showmethemoney.blogspot.com/2008/03/watch-your-receivables-like-hawk.html">factoring</a> or <a href="http://marshall-showmethemoney.blogspot.com/2006/07/when-supplier-credit-runs-out-purchase.html">purchase order financing</a>. However, there are some lenders that will provide asset based loans at rates in the single digit range. Even the <a href="http://marshall-showmethemoney.blogspot.com/2009/12/60-minutes-youre-stupid-and-youre-fat.html">SBA</a> has a program that provides asset based <a href="http://marshall-showmethemoney.blogspot.com/2009/09/credit-crunch-officially-over.html">lines of credit</a> at rates currently below 10 percent!<br /><br />Also this past week, the Federal Reserve's <a href="http://www.federalreserve.gov/boarddocs/snloansurvey/201002/fullreport.pdf">January 2010 Senior Loan Officer Opinion Survey</a> on Bank Lending Practices was released.<br /><br /><div><div>The January survey indicated that commercial banks generally ceased tightening standards on many loan types in the fourth quarter of last year but have yet to unwind the considerable tightening that has occurred over the past two years.<br /></div><br /><div>Expect to see <a href="http://marshall-showmethemoney.blogspot.com/2010/01/turnaround-management-association-hard.html">asset based lending</a> continue to grow in 2010!<br /><br />Need help finding the right lender or telling your story the right way for your business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><span style="font-size:78%;"></span><br /><span style="font-size:78%;">Tags : <a title="Asset based loans" href="http://www.technorati.com/tags/Asset+based+loans">Asset based loans</a> , <a title="factoring" href="http://www.technorati.com/tags/factoring">factoring</a> , <a title="purchase order financing" href="http://www.technorati.com/tags/purchase+order+financing">purchase order financing</a> , <a title="lines of credit" href="http://www.technorati.com/tags/lines+of+credit">lines of credit</a> , <a title="SBA loans" href="http://www.technorati.com/tags/SBA+loans">SBA loans</a></div></span></div>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-78625664028680323962010-02-02T06:00:00.000-08:002010-02-01T20:28:21.061-08:00Who Will Fund Inventory Growth?<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYrJS-25FW3a0JrA5AUGC5YL4l2-a5KgWlfIk0YTNmmXVpjwrU1qARPN7LTFEDw5GbblmDiu4LgXXmCyOP69Xhv3-016Q2PCrxl-hOIM5WW0jXR0EkAewZf50D7YQX0oxUXdOa/s1600-h/inventory.jpg"><img style="MARGIN: 0px 0px 10px 10px; WIDTH: 243px; FLOAT: right; HEIGHT: 158px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5433492679536357554" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYrJS-25FW3a0JrA5AUGC5YL4l2-a5KgWlfIk0YTNmmXVpjwrU1qARPN7LTFEDw5GbblmDiu4LgXXmCyOP69Xhv3-016Q2PCrxl-hOIM5WW0jXR0EkAewZf50D7YQX0oxUXdOa/s320/inventory.jpg" /></a>GDP grew at its fastest pace in six years in the last three months of 2009, expanding at a 5.7 percent yearly rate over the previous quarter according to <a href="http://online.wsj.com/article/SB20001424052748703389004575032893301414842.html#mod=todays_us_page_one">The Wall Street Journal</a> (subscription required).<br /><br />The largest portion of the growth, 3.4 percentage points, came from businesses shrinking <a href="http://marshall-showmethemoney.blogspot.com/2009/07/clean-up-balance-sheet.html">inventories</a> more slowly than in the previous quarter to accommodate increased demand. Shrinking <a href="http://marshall-showmethemoney.blogspot.com/2009/06/more-distributors-and-manufacturers.html">inventories</a> means increased production to prepare for future sales increases.<br /><br />One can argue about how much of the inventory buildup came from one-time events such as government stimulus programs, but one thing is clear. Businesses will have to increase inventories as the economy recovers.<br /><br />Where will the money come from to fund the inventory growth is a bigger question.<br /><div><div></div><br /><div>I know very few bank or commercial finance lenders eager to lend for inventory increases. In fact, one middle market <a href="http://marshall-showmethemoney.blogspot.com/2009/11/business-lending-down-six-percent.html">commercial banker</a> told me at lunch that inventory increases are the last thing he wants to fund. Don't expect to see improved appetite for inventory lending until <a href="http://marshall-showmethemoney.blogspot.com/2009/09/tightening-screws-on-cash.html">cash flow</a> improves. </div><div></div><br /><div>Some asset based lenders will provide <a href="http://marshall-showmethemoney.blogspot.com/2009/05/interest-expense-reduced-by-over-50.html">lines of credit</a> when there the borrower is profitable and subject to sublimits tied to accounts receivable. I also know one lender who will lend against <a href="http://marshall-showmethemoney.blogspot.com/2007/07/inventories-stressing-working-capital.html">inventory</a> only in amounts up to $10 million. The terms are tough and the pricing is not for the faint of heart.</div><div><br />Need help finding the right lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : <a title="inventory loan" href="http://www.technorati.com/tags/inventory+loan">inventory loan</a> , <a title="GDP growth" href="http://www.technorati.com/tags/GDP+growth">GDP growth</a> , <a title="line of credit" href="http://www.technorati.com/tags/line+of+credit">line of credit</a> , <a title="working capital" href="http://www.technorati.com/tags/working+capital">working capital</a></div></span></div>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-88921130387461132322010-01-20T13:21:00.000-08:002010-01-20T14:05:27.907-08:00Extend and Pretend<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhdKrnd4DXQ6h3UHvNmZMpp6WWqDIDbVX6ojucuklEyJzzHCnSLc3TUtoKMrNj8apJDXfuEse80Uz6O2D4Jj2xW7JVnKq8788j6SeXjL1R-t3NggiuuOcKp0kI04ol9IEcACHxM/s1600-h/pinocchio.jpg"><img style="MARGIN: 0px 0px 10px 10px; WIDTH: 200px; FLOAT: right; HEIGHT: 195px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5428942244164421922" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhdKrnd4DXQ6h3UHvNmZMpp6WWqDIDbVX6ojucuklEyJzzHCnSLc3TUtoKMrNj8apJDXfuEse80Uz6O2D4Jj2xW7JVnKq8788j6SeXjL1R-t3NggiuuOcKp0kI04ol9IEcACHxM/s200/pinocchio.jpg" /></a>The recent bank practice to "extend and pretend" was the focus of a commercial real estate panel discussion held last night at UCLA. The moderator, <a href="http://gibsondunn.com/Lawyers/jsharf">Jesse Sharf</a> of Gibson, Dunn & Crutcher, questioned four leading members of the commercial real estate industry on a variety of topics including "when will deals reappear?".<br /><br /><div>About two hundred attendees listened attentively to the responses of <a href="http://www.oaktreecapital.com/people/bio.aspx?src=pm&id=20">John Brady</a> (Oak Tree Capital Management), Samuel Freshman (<a href="http://standardcapitalllc.com/index.html">Standard Management Company</a>), <a href="http://www.pccpllc.com/index.cfm?fuseaction=dsp&page=people_detail&section=21&subsection=10&recid=18">Bill Lindsay</a> (Pacific Coast Capital Partners) and Sean Mahon (<a href="https://www.wellsfargo.com/">Wells Fargo Bank</a>).<br /><br />Here are the highlights from my perspective:</div><br /><ul><li>The October 30, 2009 (the night before Halloween) guidance issued by the <a href="http://www.fdic.gov/news/news/financial/2009/fil09061a1.pdf">FDIC</a> and other regulators has made it very easy for banks to extend and restructure commercial real estate loans that otherwise could have been classified as troubled assets. </li><li><a href="http://marshall-showmethemoney.blogspot.com/2009/08/two-kinds-of-pain-for-commercial-real.html">Commercial real estate</a> values will likely drop to 50 percent of their peak values as cap rates increase from 6% to 9%.</li><li>There is a HUGE shortage of capital available to <a href="http://marshall-showmethemoney.blogspot.com/2009/09/lack-of-refinancing-options-for.html">re-finance</a> all of the commercial real estate loans maturing in the next three to five years due to the implosion of the CMBS markets and balance sheet challenges faced by the <a href="http://marshall-showmethemoney.blogspot.com/2009/12/60-minutes-youre-stupid-and-youre-fat.html">commercial banking</a> community.</li><li>Low interest rates are keeping a lot of <a href="http://marshall-showmethemoney.blogspot.com/2009/07/los-angeles-commercial-real-estate.html">commercial real estate</a> loans from going into default. Look for the Federal Reserve to keep benchmark rates low for the foreseeable future.</li><li>Deal flow for <a href="http://marshall-showmethemoney.blogspot.com/2009/11/business-lending-down-six-percent.html">commercial real estate loans</a> and investor opportunities will not recover until the unemployment rate starts to drop.</li><li>All four panelists opined that commercial real estate values will continue to decline in 2010. </li></ul><p>If you were looking for some good news from last night's meeting - well, they served a very nice chardonnay! Crisp, refined and a hint of pear.</p><p>I've still got some commercial real estate bridge lenders actively pursuing loan opportunities of at least $1 million. Give me a call if I can help! </p><p><span style="font-size:78%;">Tags : </span><a title="extend and pretend" href="http://www.technorati.com/tags/extend+and+pretend"><span style="font-size:78%;">extend and pretend</span></a><span style="font-size:78%;"> , </span><a title="commercial real estate loans" href="http://www.technorati.com/tags/commercial+real+estate+loans"><span style="font-size:78%;">commercial real estate loans</span></a><span style="font-size:78%;"> , </span><a title="FDIC" href="http://www.technorati.com/tags/FDIC"><span style="font-size:78%;">FDIC</span></a><span style="font-size:78%;"> , </span><a title="bridge loans" href="http://www.technorati.com/tags/bridge+loans"><span style="font-size:78%;">bridge loans</span></a><span style="font-size:78%;"> , </span><a title="private money loans" href="http://www.technorati.com/tags/private+money+loans"><span style="font-size:78%;">private money loans</span></a></p>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-6580883879335938472010-01-06T09:47:00.000-08:002010-01-06T10:18:25.914-08:00Turnaround Management Association - A Hard Slog<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhfAF0bMGj5y816Iztow3hX9OKr4MDGW-oEtMAgADdCza8xjjtFaqIp3VD9SmOVI8BoBdbOjlrEYX8u-c92vFf3V-nI7ZdcXfJLWE9P6k4mOg9hwyFqRF2VMtAWkNZ9Lih59PM-/s1600-h/logo-teal.gif"><img style="MARGIN: 0px 0px 10px 10px; WIDTH: 207px; FLOAT: right; HEIGHT: 94px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5423689294706590130" border="0" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhfAF0bMGj5y816Iztow3hX9OKr4MDGW-oEtMAgADdCza8xjjtFaqIp3VD9SmOVI8BoBdbOjlrEYX8u-c92vFf3V-nI7ZdcXfJLWE9P6k4mOg9hwyFqRF2VMtAWkNZ9Lih59PM-/s320/logo-teal.gif" /></a>Nearly half (49%) of the respondents to the <a href="http://www.turnaround.org/Newsroom/Releases.aspx?objectId=11967">Turnaround Management Association's</a> (TMA) distressed industries forecast think durable improvement in the economy is unlikely until at least the second half of 2010. About three out of ten think the worst is over, but nearly 20 percent suggest the economy has yet to hit rock bottom.<br /><br />Access to capital remains a big question for how the economy will fare in 2010 according to 52 percent of respondents.<br /><br />Three out of four respondents think the <a href="http://marshall-showmethemoney.blogspot.com/2009/10/commercial-real-estate-more-pain-ahead.html">commercial real estate industry</a> will fare the worst in 2010 as debt matures and lenders remain reluctant to refinance.<br /><br />"Overleveraged balance sheets are one of the primary causes of industry problems," said William K. Lenhart, CTP, a partner with BDO Consulting in New York. "In 2009, many lenders were more willing to <a href="http://marshall-showmethemoney.blogspot.com/2009/08/tracking-nations-bank-failures.html">'extend and amend' </a>terms so borrowers were not in default. It is unclear if these companies took this opportunity to improve operations, reduce expenses and sell off underperforming assets to reduce debt."<br /><br /><div>My own sources have referred to many <a href="http://marshall-showmethemoney.blogspot.com/2009/12/60-minutes-youre-stupid-and-youre-fat.html">commercial bank</a> lender's actions in 2009 as more like "extend and pretend" or "delay and pray".</div><br /><div></div><div>Happy new year? We'll see.</div><div><br />Need help finding the right lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : <a title="Turnaround Management Association" href="http://www.technorati.com/tags/Turnaround+Management+Association">Turnaround Management Association</a> , <a title="TMA" href="http://www.technorati.com/tags/TMA">TMA</a> , <a title="extend and pretend" href="http://www.technorati.com/tags/extend+and+pretend">extend and pretend</a> , <a title="commercial real estate" href="http://www.technorati.com/tags/commercial+real+estate">commercial real estate</a> , <a title="bridge loans" href="http://www.technorati.com/tags/bridge+loans">bridge loans</a> </div></span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-50233242112709266802009-12-14T11:35:00.000-08:002009-12-14T12:09:30.753-08:0060 Minutes: You're Stupid and You're Fat!President Obama told <a href="http://www.cbsnews.com/video/watch/?id=5975092n&tag=api">60 Minutes</a> last night that it was "fat cat bankers" that caused the US financial systems to almost completely fail.<br /><br /><embed style="WIDTH: 353px; HEIGHT: 275px" height="275" type="application/x-shockwave-flash" pluginspage="http://www.macromedia.com/go/getflashplayer" width="353" src="http://cnettv.cnet.com/av/video/cbsnews/atlantis2/player-dest.swf" flashvars="linkUrl=http://www.cbsnews.com/video/watch/?id=5975092n&tag=contentBody;housing&releaseURL=http://cnettv.cnet.com/av/video/cbsnews/atlantis2/player-dest.swf&videoId=50080856&partner=news&vert=News&si=254&autoPlayVid=false&name=cbsPlayer&allowScriptAccess=always&wmode=transparent&embedded=y&scale=noscale&rv=n&salign=tl" allowfullscreen="true"></embed><br /><a href="http://www.cbsnews.com/">Watch CBS News Videos Online</a><br /><br />No blame for Congressional members who were taking campaign contributions from the financial services industry and then failed to adequately supervise the likes of Fannie Mae, Freddie Mac and Bear Stearns.<br /><br />No blame for borrowers who gorged on cheap money when the cash flow of their businesses couldn't demonstrate an ability to pay back those business loans.<br /><br />Nope. Just the <a href="http://marshall-showmethemoney.blogspot.com/2007/05/stupid-bankers.html">stupid bankers</a>.<br /><br />Now I'm not defending the <a href="http://marshall-showmethemoney.blogspot.com/2009/09/do-you-really-want-to-be-banker-of-year.html">fat cat bankers</a>. Just trying to add some perspective that there's a lot of parties that should share in the blame of this financial fiasco.<br /><br />However, that sound bite won't play as well on 60 Minutes. Or maybe something got left on the editing room floor.<br /><br />I'm sure the President's meeting today with the <a href="http://marshall-showmethemoney.blogspot.com/2009/08/tracking-nations-bank-failures.html">banking community</a> will go well when he tells them to <a href="http://marshall-showmethemoney.blogspot.com/2009/11/business-lending-down-six-percent.html">lend more money</a> while his regulators tell them don't be "<a href="http://marshall-showmethemoney.blogspot.com/2008/05/stupid-bankers-redux.html">stupid</a>".<br /><br />Need help finding the right lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : <a title="fat cat bankers" href="http://www.technorati.com/tags/fat+cat+bankers">fat cat bankers</a> , <a title="stupid bankers" href="http://www.technorati.com/tags/stupid+bankers">stupid bankers</a> , <a title="60 Minutes" href="http://www.technorati.com/tags/60+Minutes">60 Minutes</a> , <a title="President Obama" href="http://www.technorati.com/tags/President+Obama">President Obama</a><br /></span><span style="font-size:78%;"></span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-71428833623861387362009-11-30T08:00:00.000-08:002009-11-30T10:50:54.040-08:00Business Lending Down Six Percent<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7d87NwiwZHRpDZt52ujJUm6SegipDRJ4iB_MeLs4vjzUNJ5xdYt0NF_nDZk0CQAUpnQqiiCAE_cwmzfVbGrW-mFEvBWrf4tRlC6_xF5-3IYvar_mQtePlUQXuVAOt9uJM7DiN/s1600/NA-BC251B_FDIC_NS_20091124232019.gif"><img id="BLOGGER_PHOTO_ID_5409969091439561650" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 297px; CURSOR: hand; HEIGHT: 149px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7d87NwiwZHRpDZt52ujJUm6SegipDRJ4iB_MeLs4vjzUNJ5xdYt0NF_nDZk0CQAUpnQqiiCAE_cwmzfVbGrW-mFEvBWrf4tRlC6_xF5-3IYvar_mQtePlUQXuVAOt9uJM7DiN/s320/NA-BC251B_FDIC_NS_20091124232019.gif" border="0" /></a>Business loans in the third quarter of 2009 were down almost six percent according to <a href="http://online.wsj.com/article/SB125907631604662501.html">The Wall Street Journal</a> (subscription required). <div><div><div></div><br /><div>No doubt this decline will pit those in Congress who claim that TARP funds should lead to increased lending against bankers who claim regulators are demanding that lenders take less risk in these troubled times. With a fear of a second round of troubled loans primarily in <a href="http://marshall-showmethemoney.blogspot.com/2009/10/commercial-real-estate-more-pain-ahead.html">commercial real estate</a>, banks are as risk averse as ever.</div><div></div><br /><div>The FDIC's troubled bank list now totals 552 problem banks - approximately seven percent of all banks. Fifty banks failed in the third quarter - the most <a href="http://marshall-showmethemoney.blogspot.com/2009/08/tracking-nations-bank-failures.html">bank failures</a> in a single quarter since the fourth quarter of 1992. "Failure Friday" took a holiday break over Thanksgiving weekend. Look for bank failures to re-commence sooner than later.</div><br /><div></div><div>If your <a href="http://marshall-showmethemoney.blogspot.com/2009/10/5-million-sba-loans-if-your-name-is-joe.html">business loan</a> request is already in process, you still have a chance of <a href="http://marshall-showmethemoney.blogspot.com/2009/09/45-days-and-counting.html">obtaining funding</a> in 2009 if you are working with the right lenders. Otherwise, a 2010 funding is the more likely scenario.</div><br /><div></div><div>Need help finding the right lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Related Tags: <a href="http://technorati.com/tag/factoring,+accounts+receivable,+p.o.+financing,+purchase+order+financing,+bank+loans,+equipment+leasing,+working+capital,+cash+flow" rel="tag">factoring, accounts receivable, p.o. financing, purchase order financing, bank loans, equipment leasing, working capital, cash flow</a></span> </div></div></div>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-80615440320050573072009-11-16T06:00:00.000-08:002009-11-15T21:17:26.529-08:00Walmart Shifts to Supply Chain Finance<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEho-z7I5lYsFio3TvEqjdlD6_nKVV7TsvUftNQmfzOVNeGRFn-nDo6y4BJ43mQBP86Rb1T1Va2VSPIpKv7hSkZf6b-FWdoMBWsW930jot0Bao8SC8pZbyOxnQ2f7V8EQkPahPqX/s1600/walmart_logo_2q61.gif"><img id="BLOGGER_PHOTO_ID_5404564505882230802" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 250px; CURSOR: hand; HEIGHT: 250px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEho-z7I5lYsFio3TvEqjdlD6_nKVV7TsvUftNQmfzOVNeGRFn-nDo6y4BJ43mQBP86Rb1T1Va2VSPIpKv7hSkZf6b-FWdoMBWsW930jot0Bao8SC8pZbyOxnQ2f7V8EQkPahPqX/s320/walmart_logo_2q61.gif" border="0" /></a>Wal-mart recently announced a new supply chain finance program according to this weekend's <a href="http://online.wsj.com/article/SB20001424052748703683804574533821208957360.html#">Wall Street Journal</a> (subscription required). I first wrote about <a href="http://marshall-showmethemoney.blogspot.com/2007/04/small-business-faster-cash-lower-cost.html">supply chain finance</a> in April 2007.<br /><div></div><br /><div>This supply chain finance program will provide Wal-mart's suppliers with <a href="http://marshall-showmethemoney.blogspot.com/2009/09/tightening-screws-on-cash.html">accounts receivable financing</a> - a market which has experienced significant turmoil given the <a href="http://marshall-showmethemoney.blogspot.com/2009/07/bankruptcy-for-cit.html">bankruptcy filing of CIT</a> and the <a href="http://marshall-showmethemoney.blogspot.com/2009/09/credit-crunch-officially-over.html">credit crunch</a>, in general.</div><br /><div></div><div>Wal-mart's partner banks, including <a href="http://marshall-showmethemoney.blogspot.com/2009/08/wells-fargo-claims-top-ranking-from-cit.html">Wells Fargo</a> and Citigroup, will be providing <a href="http://marshall-showmethemoney.blogspot.com/2009/05/factoring-for-agriculture-meat-and.html">factoring</a> to Wal-mart's suppliers. It is unclear whether these rates will be any cheaper than those offered by other <a href="http://marshall-showmethemoney.blogspot.com/2009/05/factoring-for-agriculture-meat-and.html">factors</a> and <a href="http://marshall-showmethemoney.blogspot.com/2009/06/bare-knuckle-asset-based-lending.html">accounts receivable financiers</a>.</div><div></div><br /><div>The article mentioned that other retailers, including Kohl's, are also experimenting with supply chain finance programs.</div><br /><div></div><div>If you're having difficulty with your accounts receivable funding in light of the CIT situation or general market conditions, give me a call!<br /><br /><span style="font-size:78%;">Tags : <a title="Walmart" href="http://www.technorati.com/tags/Walmart">Walmart</a> , <a title="CIT" href="http://www.technorati.com/tags/CIT">CIT</a> , <a title="supply chain finance" href="http://www.technorati.com/tags/supply+chain+finance">supply chain finance</a> , <a title="accounts receivable" href="http://www.technorati.com/tags/accounts+receivable">accounts receivable</a> , <a title="factoring" href="http://www.technorati.com/tags/factoring">factoring</a></div></span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-59363566754931264192009-11-03T13:37:00.001-08:002009-11-03T13:57:00.581-08:00CIT, Commercial Real Estate and Workouts<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKTPoPJSETa53O2n-vO4q8cNTZwJxPMzNkkwklqNalB7hEmcgVPckhUGQhaXeKEmrypPSvzqGgx3zb13kKHertukfNwufCfTP13ioU92gVwAvnSFL_QC8LM08KfhO4pAKknW7m/s1600-h/CIT.jpg"><img id="BLOGGER_PHOTO_ID_5399999025065144146" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 213px; CURSOR: hand; HEIGHT: 155px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKTPoPJSETa53O2n-vO4q8cNTZwJxPMzNkkwklqNalB7hEmcgVPckhUGQhaXeKEmrypPSvzqGgx3zb13kKHertukfNwufCfTP13ioU92gVwAvnSFL_QC8LM08KfhO4pAKknW7m/s320/CIT.jpg" border="0" /></a>Lots of issues to think about these days with respect to loan workouts, CIT's bankruptcy and commercial real estate.<br /><br /><ul><li>Last week, I attended the Risk Management Association's panel discussion on loan <a href="http://marshall-showmethemoney.blogspot.com/2009/08/tracking-nations-bank-failures.html">workouts and restructurings</a>. Panelists included three <a href="http://marshall-showmethemoney.blogspot.com/2009/09/do-you-really-want-to-be-banker-of-year.html">bankers</a> from the loan workout departments and an attorney who crafts loan workout agreements. The panel's consensus was expect another year of increasing loan defaults in the world of commercial real estate and business loans. Until this workout activity starts to decline, new <a href="http://marshall-showmethemoney.blogspot.com/2009/09/credit-crunch-officially-over.html">loan origination</a> activity is not likely to pick up.</li><li>I still cannot figure out the real impact of the <a href="http://marshall-showmethemoney.blogspot.com/2009/07/bankruptcy-for-cit.html">CIT bankruptcy</a>. Many borrowers won't be able to find new lenders because CIT's advance rates against <a href="http://marshall-showmethemoney.blogspot.com/2009/06/bare-knuckle-asset-based-lending.html">inventory</a> was too high and their interest rates were too low relative to current rates. Some borrowers won't find new homes because they won't find another lender with the back-office capabilities of <a href="http://marshall-showmethemoney.blogspot.com/2009/08/wells-fargo-claims-top-ranking-from-cit.html">CIT</a> that has traditionally provided.</li><li>The FDIC issued new guidance to <a href="http://marshall-showmethemoney.blogspot.com/2009/10/commercial-real-estate-more-pain-ahead.html">commercial banks</a> allowing them to keep <a href="http://marshall-showmethemoney.blogspot.com/2009/08/two-kinds-of-pain-for-commercial-real.html">commercial real estate loans</a> on their books as "performing" even when the underlying property value has declined. I suppose this is similar to guidance issued for modification of residential <a href="http://marshall-showmethemoney.blogspot.com/2009/07/los-angeles-commercial-real-estate.html">real estate loans</a> with the intent to avoid more losses for banks at a time when their balance sheets cannot afford the earning hit.</li></ul>Need help finding the right lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : </span><a title="CIT Group" href="http://www.technorati.com/tags/CIT+Group"><span style="font-size:78%;">CIT Group</span></a><span style="font-size:78%;"> , </span><a title="CIT" href="http://www.technorati.com/tags/CIT"><span style="font-size:78%;">CIT</span></a><span style="font-size:78%;"> , </span><a title="bankruptcy" href="http://www.technorati.com/tags/bankruptcy"><span style="font-size:78%;">bankruptcy</span></a><span style="font-size:78%;"> , </span><a title="factoring" href="http://www.technorati.com/tags/factoring"><span style="font-size:78%;">factoring</span></a><span style="font-size:78%;"> , </span><a title="accounts receivable loans" href="http://www.technorati.com/tags/accounts+receivable+loans"><span style="font-size:78%;">accounts receivable loans</span></a><span style="font-size:78%;"> , </span><a title="commercial real estate" href="http://www.technorati.com/tags/commercial+real+estate"><span style="font-size:78%;">commercial real estate</span></a><span style="font-size:78%;"> , </span><a title="FDIC" href="http://www.technorati.com/tags/FDIC"><span style="font-size:78%;">FDIC</span></a>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-24773056533959642142009-10-21T15:00:00.000-07:002009-10-21T15:29:24.488-07:00$5 Million SBA Loans if Your Name is Joe or Doug<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5M61XFEuGK6Rd4IYYayZEH71pI7afQD8ekzFcVXAL5mhxtWmQ6MWbpwQlJzejqyz43F4EeSnCvRhKLyb6csiMK5t13aktD4S9KVmODDOCO9GbdkzBf0dfQgBSCq35AHh2tPWB/s1600-h/Obama+Speaks+Refocusing+Financial+Bailout+cRLpLx4_yN9l.jpg"><img id="BLOGGER_PHOTO_ID_5395183869080203746" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 200px; CURSOR: hand; HEIGHT: 136px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5M61XFEuGK6Rd4IYYayZEH71pI7afQD8ekzFcVXAL5mhxtWmQ6MWbpwQlJzejqyz43F4EeSnCvRhKLyb6csiMK5t13aktD4S9KVmODDOCO9GbdkzBf0dfQgBSCq35AHh2tPWB/s200/Obama+Speaks+Refocusing+Financial+Bailout+cRLpLx4_yN9l.jpg" border="0" /></a>Is the <a href="http://marshall-showmethemoney.blogspot.com/2009/09/credit-crunch-officially-over.html">SBA</a> considering increasing its guarantees for the <a href="http://marshall-showmethemoney.blogspot.com/2009/08/wells-fargo-claims-top-ranking-from-cit.html">SBA 7a loans</a> program for loan amounts as high as $5 million?<br /><br />Yes. But I think only if your name is Joe or Doug.<br /><br />Here's a portion of what <a href="http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_rcvry_obama_evnt_remrks09.pdf">President Obama</a> had to say about his thoughts on changes for the SBA ...<br /><br />"The first thing we need to do is increase the maximum size of various <a href="http://marshall-showmethemoney.blogspot.com/2009/07/bankruptcy-for-cit.html">SBA loans</a>. So I am calling on Congress to increase the cap on what's called 7(a) loans to $5 million. These are the loans most frequently handed out by the <a href="http://marshall-showmethemoney.blogspot.com/2009/02/sba-franchise-loan-default-rates-for.html">Small Business Administration</a> to help folks open their doors and buy machinery, <a href="http://marshall-showmethemoney.blogspot.com/2009/06/top-five-bank-leasing-companies-2009.html">equipment</a>, <a href="http://marshall-showmethemoney.blogspot.com/2009/08/two-kinds-of-pain-for-commercial-real.html">land and buildings</a>. These larger loans will help more small business owners and franchisees grow. We also need to increase the maximum size of what's called 504 loans to $5 million. These are the type of loans that Joe and Doug used to expand this business and create new jobs. And we should also increase the maximum size of microloans that go to start-ups and other smaller businesses."<br /><br />By the way, the expectation remains that the current SBA loan <a href="http://marshall-showmethemoney.blogspot.com/2009/02/kiss-and-say-goodbye.html">stimulus money</a> will be exhausted by the <a href="http://marshall-showmethemoney.blogspot.com/2009/09/45-days-and-counting.html">end of 2009</a>. Don't wait if you want to take advantage of the current higher SBA guarantees and waiver of <a href="http://marshall-showmethemoney.blogspot.com/2008/08/fixed-rate-equipment-financing.html">SBA loan</a> guarantee fees.<br /><br />Need help finding the right SBA lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : <a title="SBA loans" href="http://www.technorati.com/tags/SBA+loans">SBA loans</a> , <a title="7a loan" href="http://www.technorati.com/tags/7a+loan">7a loan</a> , <a title="SBA lender" href="http://www.technorati.com/tags/SBA+lender">SBA lender</a> , <a title="business loans" href="http://www.technorati.com/tags/business+loans">business loans</a> , <a title="equipment loans" href="http://www.technorati.com/tags/equipment+loans">equipment loans</a> , <a title="credit crunch" href="http://www.technorati.com/tags/credit+crunch">credit crunch</a></span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-53756507624411121582009-10-08T08:35:00.000-07:002009-10-08T09:06:51.626-07:00Commercial Real Estate - More Pain Ahead<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjeBtB7YUqreKeyiQw1VQB4EUwdGCUM4-j3C5t8GauyMXdumPRwRJH4loEihxNHRdzQlOc3XUBbHskzVe0k-PQYUumtwbQJ60ksJMFW8FO7u50-rFXu1Y1AP5OEJqYR6fYai-8R/s1600-h/bernanke.jpg"><img id="BLOGGER_PHOTO_ID_5390261216788847250" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 172px; CURSOR: hand; HEIGHT: 124px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjeBtB7YUqreKeyiQw1VQB4EUwdGCUM4-j3C5t8GauyMXdumPRwRJH4loEihxNHRdzQlOc3XUBbHskzVe0k-PQYUumtwbQJ60ksJMFW8FO7u50-rFXu1Y1AP5OEJqYR6fYai-8R/s320/bernanke.jpg" border="0" /></a>Commercial real estate losses could reach 45 percent next year according to an internal presentation at The Federal Reserve Bank.<br /><br />As reported in <a href="http://online.wsj.com/article/SB125487629495569591.html">The Wall Street Journal</a> (subscription required), while not the central bank's formal opinion, the presentation by Atlanta Fed real estate expert, K.C. Conway, paints a bleak picture of sliding <a href="http://marshall-showmethemoney.blogspot.com/2009/04/rocky-road-for-commercial-real-estate.html">real estate values</a>, increasing commercial real estate <a href="http://marshall-showmethemoney.blogspot.com/2008/11/commercial-real-estate-loan-defaults-on.html">loan defaults</a> and enormous amount of debt that will need to be <a href="http://marshall-showmethemoney.blogspot.com/2009/09/lack-of-refinancing-options-for.html">re-financed</a> in the next few years.<br /><br />Banks have been slow to take losses on their <a href="http://marshall-showmethemoney.blogspot.com/2009/08/two-kinds-of-pain-for-commercial-real.html">commercial real estate loan portfolios</a> because their balance sheets still have not recovered from their housing loan related losses. "<a href="http://marshall-showmethemoney.blogspot.com/2009/02/crack-cocaine-of-community-banks.html">Extend and pretend</a>" has been the philosophy of some banks whose primary focus is capital preservation and avoiding enforcement actions by regulators.<br /><br />I have personally seen three bank <a href="http://marshall-showmethemoney.blogspot.com/2009/04/commercial-real-estate-loans-under-4.html">commercial real estate loans</a> in recent weeks where the banks are in trouble on <a href="http://marshall-showmethemoney.blogspot.com/2008/07/construction-loans-may-crush-some-banks.html">construction loans</a> and <a href="http://marshall-showmethemoney.blogspot.com/2009/04/crisis-approaches-for-commercial-real.html">first trust deeds</a> gone sour. I'm working on sale leaseback solutions on two of the three that will necessitate the banks taking a significant discount on the loans. On the third, the value of the property is so low relative to the loan balance, it's not clear where the solution lies.<br /><br />Need help finding the right lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : <a title="commercial real estate loans" href="http://www.technorati.com/tags/commercial+real+estate+loans">commercial real estate loans</a> , <a title="commercial real estate" href="http://www.technorati.com/tags/commercial+real+estate">commercial real estate</a> , <a title="bank failures" href="http://www.technorati.com/tags/bank+failures">bank failures</a> , <a title="real estate bridge loans" href="http://www.technorati.com/tags/real+estate+bridge+loans">real estate bridge loans</a> , <a title="private money loans" href="http://www.technorati.com/tags/private+money+loans">private money loans</a></span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-87946654846394248822009-09-30T15:06:00.000-07:002009-10-02T10:27:27.157-07:00Do You Really Want to be Banker of the Year?<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3Gyaiu644Ka1BKe9BR0SHwETo3M2ZnDGTIqVlqC2Hknwsw_59Jk5cMtC5H3knhU8IzlclVZ_-JZ_lOS1b1nLzYm2GiWhO1WCYR21LIC4AQeBM7b1lt_dpzHIq7mlFg_WjbOOe/s1600-h/kenneth_lewis.jpg"><img id="BLOGGER_PHOTO_ID_5387387140819989058" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 200px; CURSOR: hand; HEIGHT: 147px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3Gyaiu644Ka1BKe9BR0SHwETo3M2ZnDGTIqVlqC2Hknwsw_59Jk5cMtC5H3knhU8IzlclVZ_-JZ_lOS1b1nLzYm2GiWhO1WCYR21LIC4AQeBM7b1lt_dpzHIq7mlFg_WjbOOe/s200/kenneth_lewis.jpg" border="0" /></a>Less than a year ago, then Chairman and CEO of Bank of America, <a href="http://marshall-showmethemoney.blogspot.com/2007/05/stupid-bankers.html">Ken Lewis</a>, was named <a href="http://marshall-showmethemoney.blogspot.com/2008/12/banker-of-year.html">Banker of the Year</a> for the second time by <a href="http://www.americanbanker.com/">American Banker</a>.<br /><div></div><br /><div>Today, The Wall Street Journal (subscription required) announced that <a href="http://online.wsj.com/article/SB125434715693053835.html">Mr. Lewis</a> will retire from Bank of America by year end. This announcement comes just months after Mr. Lewis losing his chairman title over the Merrill Lynch debacle.</div><div></div><br /><div>Mr. Lewis now joins Kerry Killinger (ousted CEO of Washington Mutual), Ken Thompson (ousted CEO of Wachovia) and Angelo Mozilo (ousted CEO of Countrywide) on the list of former <a href="http://marshall-showmethemoney.blogspot.com/2008/05/stupid-bankers-redux.html">Banker of the Year</a> honorees who thereafter lost their jobs!</div><div></div><br /><div>Sounds a bit like the <a href="http://en.wikipedia.org/wiki/Sports_Illustrated_Cover_Jinx">Sports Illustrated cover jinx</a>. Do you think any banker in their right mind wants to win next year's award?</div><br /><div></div><div>Need help finding the right lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : </span><a title="Banker of the Year" href="http://www.technorati.com/tags/Banker+of+the+Year"><span style="font-size:78%;">Banker of the Year</span></a><span style="font-size:78%;"> , </span><a title="American Banker" href="http://www.technorati.com/tags/American+Banker"><span style="font-size:78%;">American Banker</span></a><span style="font-size:78%;"> , </span><a title="Ken Lewis" href="http://www.technorati.com/tags/Ken+Lewis"><span style="font-size:78%;">Ken Lewis</span></a><span style="font-size:78%;"> , </span><a title="Bank of America" href="http://www.technorati.com/tags/Bank+of+America"><span style="font-size:78%;">Bank of America</span></a></div>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-30793332032800888422009-09-21T14:37:00.000-07:002009-09-21T15:28:41.048-07:00Lack of Refinancing Options for Maturing CMBS Loans<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgCYJr2SLyFr0HIOIOoXfzqAAaAwMZAt2klnHgMJ0mN0PyulThyphenhyphenqzun614k-9nCLUd4yBKm_4N8_ue4krY0Y8ly9dI7CXYcip3eMMn3lUWjcQA-OEiAWQCDOaIGbOWaQRL4Ltpi/s1600-h/commercial_real_estate2.jpg"><img id="BLOGGER_PHOTO_ID_5384051141348229826" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 200px; CURSOR: hand; HEIGHT: 133px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgCYJr2SLyFr0HIOIOoXfzqAAaAwMZAt2klnHgMJ0mN0PyulThyphenhyphenqzun614k-9nCLUd4yBKm_4N8_ue4krY0Y8ly9dI7CXYcip3eMMn3lUWjcQA-OEiAWQCDOaIGbOWaQRL4Ltpi/s200/commercial_real_estate2.jpg" border="0" /></a>In <a href="http://marshall-showmethemoney.blogspot.com/2009/08/two-kinds-of-pain-for-commercial-real.html">Two Kinds of Pain for Commercial Real Estate Loans</a>, I wrote that about the shortage of funding to refinance commercial real estate loans as they come due.<br /><br />In a study for <a href="http://online.wsj.com/article/SB125306317643414339.html">The Wall Street Journal</a> (subscription required), Trepp, which tracks the commercial real-estate market, found that, year-to-date, 528 commercial mortgage backed securities (CMBS) loans valued at $4.7 billion weren't able to refinance when they matured. About 75 percent of these <a href="http://marshall-showmethemoney.blogspot.com/2009/07/los-angeles-commercial-real-estate.html">commercial real estate</a> loans were backed by properties that were throwing off more than enough cash to service their debt!<br /><br />A quick calculation shows that the average loan size for these 528 CMBS loans was approximately $8.9 million. That's not really a large number - this lack of re-financing capacity is likely to impact small and medium sized <a href="http://marshall-showmethemoney.blogspot.com/2009/04/rocky-road-for-commercial-real-estate.html">commercial real estate</a> owners.<br /><br />At last week's ACG Conference in Los Angeles, I listened to a bank presentation on the state of the debt markets. This bank has tightened their lending criterion for loans including those secured by <a href="http://marshall-showmethemoney.blogspot.com/2009/04/commercial-real-estate-loans-under-4.html">commercial real estate</a> in part by raising the minimum <a href="http://marshall-showmethemoney.blogspot.com/2009/04/crisis-approaches-for-commercial-real.html">debt service coverage ratio</a>. If I recall correctly, a 1.35x <a href="http://marshall-showmethemoney.blogspot.com/2009/01/overly-optimistic-cash-flow-assumptions.html">debt service coverage ratio</a> is the current minimum. By the way, this bank is not lending on commercial real estate without the borrower bringing its entire relationship to the bank.<br /><br />Need help finding the right lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : <a title="commercial real estate loans" href="http://www.technorati.com/tags/commercial+real+estate+loans">commercial real estate loans</a> , <a title="commercial real estate" href="http://www.technorati.com/tags/commercial+real+estate">commercial real estate</a> , <a title="bank failures" href="http://www.technorati.com/tags/bank+failures">bank failures</a> , <a title="real estate bridge loans" href="http://www.technorati.com/tags/real+estate+bridge+loans">real estate bridge loans</a> , <a title="private money loans" href="http://www.technorati.com/tags/private+money+loans">private money loans</a> , <a title="California" href="http://www.technorati.com/tags/California">California</a></span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-48413914163074971512009-09-15T20:01:00.001-07:002009-09-15T20:17:39.352-07:0045 Days and Counting!<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgk8y5pIzOBXMsUjVQvEsk5ccy3MX8TrJDbSuo32yM65gw8iZxKxIuSh63xqXuH9wo8zc7oZyvjMeSCa6TFMTrUL0sNeoBVEKJk_11q3DlWstN4Zaxvp_5YEXZ7F4dXI9YxC_L9/s1600-h/1_acg_logo_blue.png"><img id="BLOGGER_PHOTO_ID_5381897678454811810" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 185px; CURSOR: hand; HEIGHT: 68px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgk8y5pIzOBXMsUjVQvEsk5ccy3MX8TrJDbSuo32yM65gw8iZxKxIuSh63xqXuH9wo8zc7oZyvjMeSCa6TFMTrUL0sNeoBVEKJk_11q3DlWstN4Zaxvp_5YEXZ7F4dXI9YxC_L9/s320/1_acg_logo_blue.png" border="0" /></a>This afternoon, I dropped by the <a href="http://www.acgla.org/default.aspx">2009 M&A Business Conference</a> for the Association of Corporate Growth's Los Angeles chapter. Both the lobby and the Capital Connection room were buzzing with activity.<br /><div></div><br /><div>The Capital Connection room was filled with representatives of over 100 <a href="http://marshall-showmethemoney.blogspot.com/2008/09/credit-crunch-impact-on-middle-market-m.html">private equity firms</a> with one lender and one <a href="http://marshall-showmethemoney.blogspot.com/2009/08/two-kinds-of-pain-for-commercial-real.html">commercial real estate</a> sale-leaseback firm thrown in for good measure. The room was packed with deal makers trying to figure out how to get a piece of the <a href="http://dealbook.blogs.nytimes.com/2009/06/03/pe-firms-sitting-on-a-record-pile-of-unused-capital/">$400 billion of equity</a> overhang that everyone keeps talking about! </div><div></div><br /><div>Spoke to a few of the <a href="http://marshall-showmethemoney.blogspot.com/2009/08/latest-in-lending-developments.html">lenders</a> milling about and each one confirmed the same. If you've got a <a href="http://marshall-showmethemoney.blogspot.com/2009/09/credit-crunch-officially-over.html">business loan</a> that needs to be funded by year end, you need to submit the deal to a lender (preferably with a complete due diligence package) by Halloween. After that, there's a reduced likelihood the deal could close by New Year's Eve.</div><br /><div></div><div>Need help finding the right lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : </span><a title="Association of Corporate Growth Los Angeles" href="http://www.technorati.com/tags/Association+of+Corporate+Growth+Los+Angeles"><span style="font-size:78%;">Association of Corporate Growth Los Angeles</span></a><span style="font-size:78%;"> , </span><a title="sale leaseback" href="http://www.technorati.com/tags/sale+leaseback"><span style="font-size:78%;">sale leaseback</span></a><span style="font-size:78%;"> , </span><a title="business loans" href="http://www.technorati.com/tags/business+loans"><span style="font-size:78%;">business loans</span></a></div>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-30489646044871027682009-09-08T06:00:00.000-07:002009-09-07T13:28:17.676-07:00Credit Crunch Officially Over<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheVQ6BJReVYTmwMxD-GVNlEXrWZZygk1g7ClbUghP0f-Vpx48_GnTxb0djYf06jdoiGgiR7MP2hnVPRi1RmnmEyoDMKPOKbpST_wlXOZ-aWzE2QJSljPMeu_YSxWJKGPLgbuSI/s1600-h/chart_7a_loans_03.gif"><img id="BLOGGER_PHOTO_ID_5376718800071273394" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 220px; CURSOR: hand; HEIGHT: 317px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheVQ6BJReVYTmwMxD-GVNlEXrWZZygk1g7ClbUghP0f-Vpx48_GnTxb0djYf06jdoiGgiR7MP2hnVPRi1RmnmEyoDMKPOKbpST_wlXOZ-aWzE2QJSljPMeu_YSxWJKGPLgbuSI/s320/chart_7a_loans_03.gif" border="0" /></a>The <a href="http://marshall-showmethemoney.blogspot.com/2009/06/bare-knuckle-asset-based-lending.html">credit crunch</a> is officially over - at least for one of my clients, an operator of barges and a tugboat.<br /><br />When referred to me by a Southern California chief financial officer, the borrower had to complete a refinancing of purchase money debt within 25 business days. They were in discussions with six <a href="http://marshall-showmethemoney.blogspot.com/2009/03/plenty-of-money-to-lend.html">commercial banks</a>, but getting nowhere fast. The bankers were quite interested in the company's deposit potential, but had absolutely no interest in providing the <a href="http://marshall-showmethemoney.blogspot.com/2009/06/top-five-bank-leasing-companies-2009.html">equipment loan</a>.<br /><br />Within days of being hired, I submitted a completed application and full due diligence package to an <a href="http://marshall-showmethemoney.blogspot.com/2008/08/fixed-rate-equipment-financing.html">SBA lender</a>. A cooperative and well prepared client was a huge plus! We received an approval for an <a href="http://marshall-showmethemoney.blogspot.com/2008/05/sba-experience-wanted.html">SBA 7a loan</a> within 10 days, subject to an appraisal. The deal closed the last week of August with days to spare before the borrower's deadline.<br /><br />Why is the <a href="http://marshall-showmethemoney.blogspot.com/2009/03/solving-banking-crisis.html">credit crunch</a> over for this borrower?<br /><br /><a href="http://marshall-showmethemoney.blogspot.com/2009/01/rocket-fuel-for-growth.html">Funding 911</a> knew the right lender and presented a convincing story on why the <a href="http://marshall-showmethemoney.blogspot.com/2009/03/problem-banks-list-grows.html">SBA lender</a> should expect full and timely repayment of the loan. The borrower can now focus on growing a successful company and not worry about finding <a href="http://marshall-showmethemoney.blogspot.com/2009/05/interest-expense-reduced-by-over-50.html">money</a>.<br /><br />A couple of quick notes on the SBA loan market...<br /><br />According to many sources including this <a href="http://money.cnn.com/2009/08/28/smallbusiness/secondary_market_small_business_loans/index.htm">CNN report</a>, <a href="http://marshall-showmethemoney.blogspot.com/2008/10/sba-loans-decrease-for-fiscal-year-08.html">SBA loan volume</a> has picked up significantly compared to earlier this year primarily because the secondary markets for SBA loans has healed itself - without much assistance from the government. The ability to quickly replenish their coffers and the attractive premiums once again available for selling these loans have enticed lenders to make more <a href="http://marshall-showmethemoney.blogspot.com/2009/02/sba-franchise-loan-default-rates-for.html">SBA loans</a>.<br /><br />By the way, as part of the <a href="http://marshall-showmethemoney.blogspot.com/2009/02/kiss-and-say-goodbye.html">spring stimulus</a> passed by Congress, the <a href="http://marshall-showmethemoney.blogspot.com/2009/08/wells-fargo-claims-top-ranking-from-cit.html">SBA</a> was granted over $700 million to increase guarantees and waive borrower paid guarantee fees. Sources say that these funds may be completely utilized by the end of the calendar year. If your business is considering an <a href="http://marshall-showmethemoney.blogspot.com/2008/02/fast-sba-loan-approval.html">SBA loan</a> and wants to avoid the stiff guarantee fees, don't wait to apply!<br /><br /><span style="font-size:78%;">Tags : <a title="SBA loans" href="http://www.technorati.com/tags/SBA+loans">SBA loans</a> , <a title="7a loan" href="http://www.technorati.com/tags/7a+loan">7a loan</a> , <a title="SBA lender" href="http://www.technorati.com/tags/SBA+lender">SBA lender</a> , <a title="business loans" href="http://www.technorati.com/tags/business+loans">business loans</a> , <a title="equipment loans" href="http://www.technorati.com/tags/equipment+loans">equipment loans</a> , <a title="credit crunch" href="http://www.technorati.com/tags/credit+crunch">credit crunch</a> </span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-25759949084291165312009-09-02T20:00:00.000-07:002009-09-01T20:25:37.706-07:00Tightening the Screws on Cash<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYfNvi2M136PQnRbqYqbYaYy4-RTw5zc9GSz6mfsvHVBTPTSXJhz3bCNB4bn6tl0ZgX-6anLkQwJwi6mzJMoNewanegH3G1nF_58SSmlNJqpAKOYmnJZJBtgWbrg4uJ7_Lvulw/s1600-h/Collect+the+cash.gif"><img id="BLOGGER_PHOTO_ID_5376700937303727826" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 200px; CURSOR: hand; HEIGHT: 189px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYfNvi2M136PQnRbqYqbYaYy4-RTw5zc9GSz6mfsvHVBTPTSXJhz3bCNB4bn6tl0ZgX-6anLkQwJwi6mzJMoNewanegH3G1nF_58SSmlNJqpAKOYmnJZJBtgWbrg4uJ7_Lvulw/s200/Collect+the+cash.gif" border="0" /></a>Money tied up in <a href="http://marshall-showmethemoney.blogspot.com/2009/07/clean-up-balance-sheet.html">working capital</a> is not available to grow the business - or in today's environment, not available to help a company survive the economic turmoil.<br /><br />So it's not surprising that The Wall Street Journal (subscription required) gave front page coverage to the most recent study by <a href="http://online.wsj.com/article/SB125167116756270697.html">REL Consultancy</a> on how big firms are expediting <a href="http://marshall-showmethemoney.blogspot.com/2008/11/cash-in-cash-out.html">cash collections</a> and <a href="http://marshall-showmethemoney.blogspot.com/2009/07/forecast-your-cash.html">slowing cash payments</a> - particularly at the expense of the smaller or weaker companies with whom they conduct business.<br /><br />The largest companies are particularly good at this <a href="http://marshall-showmethemoney.blogspot.com/2009/01/rocket-fuel-for-growth.html">cash flow</a> exercise. Companies over $5 billion of annual revenues remit their payables on average in 55.8 days and collect their <a href="http://marshall-showmethemoney.blogspot.com/2008/09/line-up-international-receivables.html">receivables</a> in as little as 41 days - a net of almost 15 days of <a href="http://marshall-showmethemoney.blogspot.com/2008/03/watch-your-receivables-like-hawk.html">working capital</a> in their favor.<br /><br />Companies below $500 million in revenues are not quite as successful in managing <a href="http://marshall-showmethemoney.blogspot.com/2009/01/overly-optimistic-cash-flow-assumptions.html">cash flow</a>. The cash is going out the door faster than it comes in! The small and mid size enterprises take almost 59 days to collect their <a href="http://marshall-showmethemoney.blogspot.com/2009/05/interest-expense-reduced-by-over-50.html">receivables</a> while remitting payments in a fraction over 40 days - a net of almost 19 days of working capital to their detriment.<br /><br />Many of the small and mid sized companies that I see are experiencing a similar <a href="http://marshall-showmethemoney.blogspot.com/2009/06/bare-knuckle-asset-based-lending.html">working capital</a> crunch. As a result, some of these companies <a href="http://marshall-showmethemoney.blogspot.com/2007/09/collect-your-cash-faster.html">lack the cash</a> to take advantage of new orders that could lead to a return to profitability as the economy improves.<br /><br />In an <a href="http://marshall-showmethemoney.blogspot.com/2009/02/survey-says.html">environment</a> where <a href="http://marshall-showmethemoney.blogspot.com/2009/06/credit-still-tight.html">credit is tight</a> and more expensive, it pays to carefully watch one's working capital and <a href="http://marshall-showmethemoney.blogspot.com/2008/05/another-way-to-accelerate-cash-flow.html">cash flow</a>!<br /><br />Need help finding the right lender or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : <a title="working capital" href="http://www.technorati.com/tags/working+capital">working capital</a> , <a title="cash flow" href="http://www.technorati.com/tags/cash+flow">cash flow</a> , <a title="accounts receivable" href="http://www.technorati.com/tags/accounts+receivable">accounts receivable</a> , <a title="credit crunch" href="http://www.technorati.com/tags/credit+crunch">credit crunch</a> , <a title="REL Consultancy" href="http://www.technorati.com/tags/REL+Consultancy">REL Consultancy</a><br /></span><span style="font-size:78%;"></span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-14536547587254684922009-09-01T06:00:00.000-07:002009-09-01T20:25:15.560-07:00Two Kinds of Pain for Commercial Real Estate Loans<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8gi0eYfe1sqUGblsXzqqwgqxHW-LShvEnw0yG5QUe7D7F23J3uFmk5H9-zbgZed0HtLuPUnSWTKvtnLkJ_DUVQ7R2sBGVUKzOt-xtIxCxJFI_8p6NEsA-ki9Y6OBLNtEAhtUf/s1600-h/CMBS.gif"><img id="BLOGGER_PHOTO_ID_5376355508665617202" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 200px; CURSOR: hand; HEIGHT: 166px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8gi0eYfe1sqUGblsXzqqwgqxHW-LShvEnw0yG5QUe7D7F23J3uFmk5H9-zbgZed0HtLuPUnSWTKvtnLkJ_DUVQ7R2sBGVUKzOt-xtIxCxJFI_8p6NEsA-ki9Y6OBLNtEAhtUf/s200/CMBS.gif" border="0" /></a>Just when it looks like the banks may be putting the residential mortgage mess behind them, <a href="http://marshall-showmethemoney.blogspot.com/2009/07/los-angeles-commercial-real-estate.html">commercial real estate loans</a> are a reminder that the <a href="http://marshall-showmethemoney.blogspot.com/2009/04/commercial-real-estate-loans-under-4.html">real estate sector</a> is just getting ready for round two. This next wave of pain could put a number of bank lenders into the hurt locker.<br /><br /><a href="http://online.wsj.com/article/SB125167422962070925.html">The Wall Street Journal</a> (subscription required) reminds us the $700 billion of commercial mortgage backed securities (<span class="blsp-spelling-error" id="SPELLING_ERROR_0">CMBS</span>) outstanding are experiencing their first major downturn. The sector will likely suffer two kinds of pain.<br /><br />First - sloppy underwriting for <a href="http://marshall-showmethemoney.blogspot.com/2009/04/rocky-road-for-commercial-real-estate.html">commercial real estate loans</a> resulted in overly optimistic cash flow assumptions by <a href="http://marshall-showmethemoney.blogspot.com/2008/05/stupid-bankers-redux.html">stupid bankers</a>. With the economic downturn, vacancy rates have cut <a href="http://marshall-showmethemoney.blogspot.com/2009/01/overly-optimistic-cash-flow-assumptions.html">cash flow</a> well below the ability of many <a href="http://marshall-showmethemoney.blogspot.com/2008/08/next-shoe-to-drop-commercial-real.html">commercial real estate</a> properties to service their debts.<br /><br />Second - Over $150 billion of <a href="http://marshall-showmethemoney.blogspot.com/2009/04/crisis-approaches-for-commercial-real.html"><span class="blsp-spelling-error" id="SPELLING_ERROR_1">CMBS</span></a> simply mature in the next three years. Given the <span class="blsp-spelling-error" id="SPELLING_ERROR_2">CMBS</span> market has collapsed and isn't available for refinancing purposes, there is little hope that there will be sufficient loan capacity in the weakened bank market to re-finance many of these loans.<br /><br />The end result - values will drop further as <span class="blsp-spelling-error" id="SPELLING_ERROR_3">CMBS</span> go into default causing <a href="http://marshall-showmethemoney.blogspot.com/2009/02/crack-cocaine-of-community-banks.html">banks</a> to have to lower <a href="http://marshall-showmethemoney.blogspot.com/2007/12/is-other-shoe-about-to-drop.html">commercial real estate</a> valuations in their own portfolios. At some point, banks could be forced into devaluing commercial real estate loans on its own books even if they are performing!<br /><br />Need help finding the right lender to finance your California commercial real estate? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : <a title="commercial real estate loans" href="http://www.technorati.com/tags/commercial+real+estate+loans">commercial real estate loans</a> , <a title="commercial real estate" href="http://www.technorati.com/tags/commercial+real+estate">commercial real estate</a> , <a title="bank failures" href="http://www.technorati.com/tags/bank+failures">bank failures</a> , <a title="real estate bridge loans" href="http://www.technorati.com/tags/real+estate+bridge+loans">real estate bridge loans</a> , <a title="private money loans" href="http://www.technorati.com/tags/private+money+loans">private money loans</a></span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0tag:blogger.com,1999:blog-29670312.post-20507331050416327092009-08-28T17:39:00.000-07:002009-08-28T18:20:26.326-07:00Tracking the Nation's Bank Failures<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOLOCXVj93WQkrreaC75oSs2S1lVTr-_wm550OnXfhuUuyImFIh2cVkAB_4lEPsFca5CNgMHopSm1Cf3jCJzB5kpL4QdeMygrNYqH8PUfiaJtHuAW1bYmWEuRA0e2q8_XcWCYm/s1600-h/Growing+List.gif"><img id="BLOGGER_PHOTO_ID_5375183103901224754" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; WIDTH: 183px; CURSOR: hand; HEIGHT: 259px" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOLOCXVj93WQkrreaC75oSs2S1lVTr-_wm550OnXfhuUuyImFIh2cVkAB_4lEPsFca5CNgMHopSm1Cf3jCJzB5kpL4QdeMygrNYqH8PUfiaJtHuAW1bYmWEuRA0e2q8_XcWCYm/s320/Growing+List.gif" border="0" /></a>The FDIC announced that its "<a href="http://marshall-showmethemoney.blogspot.com/2009/03/problem-banks-list-grows.html">problem bank</a>" list has grown to 416 banks, an increase of 111 banks since last quarter according to <a href="http://online.wsj.com/article/SB125137695691263385.html?mod=rss_whats_news_us_business">The Wall Street Journal</a> (subscription required). If my math is correct (and my logic sound), the <a href="http://marshall-showmethemoney.blogspot.com/2009/02/crack-cocaine-of-community-banks.html">problem bank list</a> has actually grown by close to 160 banks when one considers that <a href="http://marshall-showmethemoney.blogspot.com/2009/03/plenty-of-money-to-lend.html">bank failures</a> in the last quarter totaled almost 50 banks.<br /><br /><div>While concerns grow that the <a href="http://marshall-showmethemoney.blogspot.com/2009/03/solving-banking-crisis.html">FDIC's insurance fund</a> is about to be consumed, the questions intensify over whether or not the <a href="http://marshall-showmethemoney.blogspot.com/2008/11/more-bank-failures-on-way.html">FDIC </a>may soon be forced to borrow from its $100 billion line of credit at the Treasury Department.<br /><br />Within the online version of The Wall Street Journal (subscription required), they created this great little <a href="http://s.wsj.net/public/resources/documents/info-Failed_Banks-sort.html">interactive tool</a> to show readers which banks have <a href="http://marshall-showmethemoney.blogspot.com/2009/07/bankruptcy-for-cit.html">failed</a> this year, the size of the institution, the name of the rescuing bank and the cost to the FDIC<br /><br />Honors for costing the <a href="http://marshall-showmethemoney.blogspot.com/2009/08/latest-in-lending-developments.html">FDIC</a> insurance fund the most - IndyMac Bank at $8.9 billion.<br /><br />Honors for being the biggest failure by asset size - Washington Mutual with $307 billion of assets.<br /><br />The problem <a href="http://marshall-showmethemoney.blogspot.com/2009/04/crisis-approaches-for-commercial-real.html">bank</a> list still represents only 5 percent of all <a href="http://marshall-showmethemoney.blogspot.com/2009/04/commercial-real-estate-loans-under-4.html">banks</a>. There is still money available for all types of business borrowers with a variety of risk profiles. Even bank money. </div><div> </div><div>Need help finding the right <a href="http://marshall-showmethemoney.blogspot.com/2009/06/credit-still-tight.html">lender</a> or telling your story the right way for your California business? Read "<a href="http://marshall-showmethemoney.blogspot.com/2006/09/matchmaking-for-business-loans.html">Matchmaking for Business Loans</a>" and give me a call!<br /><br /><span style="font-size:78%;">Tags : <a title="Problem Bank List" href="http://www.technorati.com/tags/Problem+Bank+List">Problem Bank List</a> , <a title="Failed Banks" href="http://www.technorati.com/tags/Failed+Banks">Failed Banks</a> , <a title="FDIC" href="http://www.technorati.com/tags/FDIC">FDIC</a> , <a title="Washington Mutual" href="http://www.technorati.com/tags/Washington+Mutual">Washington Mutual</a> , <a title="IndyMac Bank" href="http://www.technorati.com/tags/IndyMac+Bank">IndyMac Bank</a></div></span>Marshall Lebovitshttp://www.blogger.com/profile/15213872451856728295noreply@blogger.com0