In a broad sense, most loans can be divided into two basic types: an asset-based loan (ABL) and a cash flow loan.
An ABL is made by a lender who underwrites the loan primarily by valuing the company’s assets, such as accounts receivable (A/R) and inventory. An ABL lender underwrites a loan based on the ability to liquidate its collateral should it need to. A “cash flow” lender, in contrast, while also secured against the borrower’s assets, underwrites the loan primarily based on the cash flow and general credit-worthiness of the borrower.
The distinction between these types of loans is only the beginning of understanding the many types of loans available to a business, because within each of the two types there are many subtypes.
This webinar takes the audience through a guided tour of the various borrowing options available to businesses, from both a business and legal perspective, to paint the overall landscape of the different types of lenders that exist and to provide a framework for understanding what type of lender and loan may make sense for any particular borrower.
Hajar Jouglaf is an associate at Sugar Felsenthal Grais & Helsinger who collaborates with clients to identify and resolve critical issues when dealing with distressed situations. Hajar also sits on… Read More
Arlene has been in the financial industry since 1988, ranging from Business Banking/Commercial Lending to Commercial Real Estate. As an SBA Lender with Huntington Bank, she has determined that there… Read More
Harvey Gross is the founder and president of HSG Services Inc. He was formerly a vice president with Bank of America for over 30 years. He served as wholesale credit… Read More