Commercial Lending Review articles from July 2005

Commercial Lending Review archives from July 2005

Using the statement of cash flows: lenders gain insights by examining the statement of cash flows in concert with the income statement and balance sheet.
July 1, 2005... Although the statement of cash flows (SCF) has been mandatory under U.S. GAAP (generally accepted accounting principles) since 1988, interpretation of this statement is less understood by most groups of users than the traditional income...

Winning small business wallets requires restructuring: five initiatives required to serve small businesses.
July 1, 2005... Winning the hearts and wallets of the once-ignored small business customer segment has become a core strategy for most financial institutions. This segment is large not only in number but also in revenue potential, two important attributes at a...

Improving online banking for small business: the Internet can help financial institutions differentiate their services for small businesses.
July 1, 2005... The introduction of online banking brought fear to bankers and anticipation to small business customers. It was widely predicted that online banking would completely transform the banking industry, ending the need for new brick-and-mortar...

Best practices for middle-market lending: larger loans, automation and a focus on retaining customers are hallmarks of successful banks.
July 1, 2005... Long seen as a consistent, stable income provider, the middle-market segment of commercial lending is beginning to strain under ever-expanding competition, compounded by shrinking margins and a diminishing client base. Realizing that...

How to lose $20 million on a $30 million secured loan: the expensive story of a loan gone bad.
July 1, 2005... January 23, 1998, was a great day for Joe Goldman, CEO and owner of Color-Tex International, Inc. He had just closed on his acquisition of North Carolina Finishing, Inc. (NCF) from Pillowtex, Inc., and it looked like a great deal. NCF was his...

Your job is to make them thirsty: client-focused questions move your bank from commodity seller to strategic partner.
July 1, 2005... A sales manager, a business banker and a horse are standing near a stream. The frustrated banker turns to her manager and says "I have been here for over an hour with this stupid horse and it will not take a drink." The sales manager replies...

Incremental sales finance: a vehicle for small business growth: a case study of company growth rates with incremental sales finance.
July 1, 2005... For most small business owners, the choice of financing runs the gamut from financing one's business on personal credit cards to factoring accounts receivable to conventional asset-based financing. As more companies become virtual, however, in...

The power and efficiency of centralized lending: reduce exceptions and control staff costs with a central lending function.(Brief Article)
July 1, 2005... Financial institutions that want to evaluate the efficiency and cost-effectiveness of their lending processes often employ a third party to conduct a process improvement study. Through process improvement, an institution can improve work flow,...

The hierarchy of generally accepted accounting principles: GAAP statements must be prepared in accordance with the GAAP hierarchy.(generally accepted accounting principles )
July 1, 2005... The Financial Accounting Standards Board (FASB) recently issued an exposure draft of a proposed Statement of Financial Accounting Standards (SFAS) to identify the sources of accounting principles and the framework for selecting the principles...

Risk management and the money laundering challenge: a discussion of the risks with few practical solutions.
July 1, 2005... The idea of robbing banks is well ingrained in popular culture, although the reality of bank robberies is often at odds with the Hollywood version. The criminals are themselves never quite as glamorous as Paul Newman and Robert Redford (BUTCH...

Training bank employees.(Brief Article)(Excerpt)
July 1, 2005... In Mathers's Four (+ 1) Basic Principles of Money Laundering Compliance, Principle # 3 deals with training. Regular and comprehensive training for all employees. Since financial institutions are still considered to be the front...