Tighter Credit And Bigger Deals Are Making Asset-Based Loans More Respectable
- Topics:
- Commercial Lending
- Tags:
- Asset,
- Asset Based Loan,
- Asset Management,
- Bank Of America Corp.,
- Business Operations,
- Electronics,
- Operational Planning
- Source:
- Bank of America Business Capital
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Overview: The article gives an example of Hexcel Corporation which saw an unprecedented drop in the global electronics industry wipe out $100 million—two-thirds of the annual revenues from the composite-maker's electronics business followed by further drops because terrorist attacks. It took them to ABL (asset-based lending) market in the final analysis. Asset-based lenders have long been experts at determining how much of a company's receivables or inventory they can recover in the event of a default, and the size of the revolver they offer fluctuates according to that "borrowing base."
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Format: HTML | Date: Nov 2003 | Pages: 1
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