Debt Capital Markets
First Quarter Report
Banks maintain a solid appetite for new loans as we enter 2017; however, it remains to be seen if banks begin to become more selective in their investment decisions in the overall context of a rising rate environment coupled (potentially) with a less rigid regulatory environment.READ MORE
The idea of Medicare for All and a single-payer system is gaining momentum. What are the pros and cons of various approaches?
“Medicare for All” has one bill in the Senate and another in the House. Both propose a universal, single-payer model and would replace current employer and public coverage. Get the pros and cons of the various approaches.
Have you prepared for the day when you will pass your financial baton to a new generation of finance leaders? Start with the recruiting process.
Numerous business surveys demonstrate that many CFOs, especially in small to medium-sized businesses, have never developed a succession plan for their own job title.
Find out how a revolving line of credit can help manage the “cash eating” impact of fluctuating inventory needs.
Economic cycles, changes in demand and gains or losses of major customers affect inventory management. Find out how a revolving line of credit can help you deal with the “cash eating” impact of fluctuating inventory needs.
How APIs can help you improve efficiency and power new opportunities to help you improve products, systems and operations.
What are APIs and why is their use growing? As consumers, we use them to order takeout or pay for a ride to the airport. In business, you can use them to tailor functionality and benefit from new technologies like faster payments.
Outsourcing could give you access to more resources to improve decision-making. We look at resources, rules and risk.
Outsourcing investment decisions can be an efficient way to meet the challenges of an increasingly complex defined contribution plan environment. But is it for you? We look at resources, rules and risk.
Unitranche loans can provide attractive options and flexibility for middle-market borrowers. Are they right for your company?
Before unitranche debt emerged in the mid-2000s, middle-market borrowers did not have access to the same kind of innovative financing options as larger organizations. Now they do.
How recurring revenue lending is helping SaaS companies achieve their bold visions.
Software as a Service (SaaS) companies took software out of shrink wrapped boxes and put it in the cloud. They've changed everything from how individuals do taxes to how massive supply chain partners work out multi-million dollar global purchases.
How to benefit from ideas and insights that can make a material difference in company performance.
Turn to your banker for ways to improve your ability to recruit and retain the right employees, maintain access to capital, manage your cash cycle efficiently, mitigate risk, and maintain and grow your wealth.
Equipment financing can deliver a low- to no-down payment while helping you preserve capital and manage cash flow.
Accumulating long term fixed assets by borrowing on your line of credit could be a mistake. Here’s how to maintain flexibility and access to capital when you need it most.
Understand how banks use debt capacity analysis to help you develop the best financial structure for your company.
What's the best way to finance ongoing operations? To fund your growth and expansion plans? Understand how banks use debt capacity analysis to help you decide the best type of loan and overall financial structure for your company.
Find out how to acquire capital at favorable rates and amend a facility if necessary. Your banking relationship is key.
Find out how to position your company to seek capital at favorable rates and amend a facility should it become necessary. Open communication with your lender or lenders is key.
Operating lease payments can be increased or reduced to more easily match revenues and expenses when acquiring new equipment.
While the new accounting rules eliminate the off-balance sheet nature of operating leases, this type of lease structure can still offer advantages for assets and equipment ranging from computers to jets.
The equipment finance industry has undergone seismic change. Find out why that’s for the better.
Equipment finance started as a specialized service supporting manufacturer sales. But equipment needs don’t exist in silos. Focusing on the client and reaching beyond the boundaries of the internal organization makes sense today.
CFOs need to build financial teams that support the skills needed to become key members of the management team.
Beyond the basics, the finance organization needs to be a driver in implementing new technology to better manage financial and business information throughout the organization.
Before spending a lot of time and money traveling down that road, you should ask yourself these key questions.
Before spending a lot of time and money traveling down that road, you should ask yourself these key questions. You’ll want to consider your competitive position, cost of capital, control, culture and process.
The ABL market offers a growing range of products that include a foreign component, allowing borrowers to access wider markets.
One driver of cross-border ABL has been the ability of mid-market companies to access global markets as they develop new customers in other countries or benefit from benign economic and tax regimes overseas.
Find out how to separate a bank that creates and maintains relationships from one that is a relationship bank in name only.
It’s important to separate a bank that is consistent in maintaining relationships from one that is a relationship bank in name only. Here are five questions to ask yourself when it’s time to change your banking relationship.
Our economic and investment strategists share their perspectives on how the November election results could impact financial markets and your portfolio.
Watch this webinar to understand the political backdrop in the United States, tariffs & anxiety over international trade, interest rates, the Fed and more.
Understanding how covenants work is the key to negotiating favorable terms and successfully executing strategic plans.
Loan covenants are mutually beneficial arrangements that can help businesses to improve their health, expand operations and weather an economic downturn. Find out how covenants work.
Geese prices are flying high, while the labor market is tight for Lords-a-Leaping. French hens are holding steady.
PNC's quirky and highly anticipated Christmas Price Index predicts the seasonal price of the gifts listed in the "Twelve Day of Christmas." Find out what the 35th annual analysis says about swans, gold rings and turtledoves.
Tips for planning for the life cycle of your equipment.
Effectively managing your company's capital equipment program is closely tied to managing the long-term growth and profitability of your company. Obtaining the right equipment at the right time and managing its useful life in conjunction with the needs of the entire organization can make a big difference in your company's long-term financial performance.
Many payers find themselves well-situated to play a central role in solving healthcare's thorniest problems. Review the research.
The U.S. healthcare industry is under tremendous pressure to reduce costs while improving health outcomes. Payers are reimagining themselves for a more influential role in the evolving healthcare environment.
The U.S. economy and market performance have been strong so far in 2018. Will the markets like the
Attend this exclusive webinar featuring PNC economic and investment strategists, plus guest speaker, Daniel Clifton of Strategas Research Partners, to hear how the November election results could impact the financial markets, and your portfolio.
Find out how your portfolio could benefit from both active and passive investment in different ways and at different times.
One of the most debated topics in the investment management industry is the active-passive decision. Find out how your portfolio could benefit from exposure to both in different ways and at different times.
Find out how important it is to work with a bank that is consistent in creating and maintaining
Most banks claim to be “relationship” banks. But are they? Is yours? And why does it matter? It’s important to be able to identify a bank that is consistent in creating and maintaining relationships.
Do you take your car in for a state inspection or visit your doctor for an annual physical? Check out these reasons to give your finances the same kind of consistent attention.
Regular account or plan reviews can help you prioritize your goals and create an actionable plan to avoid potentially costly investment mistakes. With that in mind, here are five additional reasons you should review your financial situation annually.
The dynamics of business succession planning are broad, and they must be aligned and well-planned in order to have a seamless transition that meets your business and personal goals.
As you begin the journey toward a business transition, are you inundated with well-intentioned advice? Who should you turn to? Your attorney? Your accountant? A family member? Each may see your situation through a narrow and different lens which may produce contradictory guidance. Here are five questions to help get you started.
The Tax Cuts and Jobs Act made the most significant changes to business tax law in more than three decades.
The Tax Cuts and Jobs Act made the most significant changes to business tax law in more than three decades. Find out how several aspects of the new code specifically impact capital equipment acquisition and finance transactions.
Now that your taxes are out of the way, add these eight relatively easy tasks to your late-spring-cleaning list.
Once or twice a year, there are a few things that need to be done around your home. Change the batteries in the smoke detectors. Replace the furnace filters. And perform a handful of rather important financial tasks.
Being engaged in your work and working hard isn't the same as compulsive working that comes at the expense of your well-being and interpersonal relationships.
Being engaged in your work and working hard isn't the same as compulsive working that comes at the expense of your well-being and interpersonal relationships. Discover surprising ways to strike a balance.
We examine the shape of employer-sponsored healthcare plans, why companies struggle, and how they are coping with exploding healthcare costs.
Willow Research and PNC Healthcare conducted a study of senior level executives at U.S. companies who offer healthcare benefits to their employees. We examined the contours of employer-sponsored healthcare plans today, what companies are struggling with, and how they are coping with exploding healthcare costs.
With many banks still wary of investing in growing companies, ABL can provide strategic support with plans for growth, plus mergers, acquisitions and general refinancing.
With many banks still wary of investing in growing companies, ABL can help with short- and long-term capital needs. It offers companies strategic support with their plans for growth, plus mergers, acquisitions and general refinancing.
We provide some approaches to effectively and efficiently control your healthcare costs while still offering competitive and attractive benefits programs for your employees.
While both employers and employees typically benefit from lower premiums with an HSA-Qualified Health Plan, it is also important for employers to help employees prepare for their greater responsibility and decision-making roles in how their healthcare dollars are spent.
The right questions can lead to a comprehensive vision and better solutions for your business.
The right questions can lead to a comprehensive vision and better solutions for your business that take into account the long term as well as the short term, and the local as well as the global. At PNC, digging deep to find relevant ideas is in our DNA, and it’s the reason we’re able to provide critical guidance others often miss.
Your lawyer, your accountant, your banker. Most companies know they need this trio of professionals in order to meet their business and financial goals.
Your lawyer, your accountant, your banker. Most companies know they need this trio of professionals in order to meet their business and financial goals. But too often, management turns to their banker only when they need financing or an upgrade to their treasury management tools.
Less than one-third of family-owned businesses survive the transition from one generation to the next. Start planning now with thought-provoking insights.
More than 50% of business owners in the United States expect to turn over their company to the next generation in the next five years, yet less than one-third of family-owned businesses survive the transition. Start planning now with thought-provoking insights.
Buy-sell agreements are key to business transition planning. Proper documentation can allow for continued success of the business by avoiding conflicts between business owners.
Buy-sell agreements allow you to express your goals as to how your business interests should be transferred in the future while creating contractual limits intended to allow those goals to be met.
The equipment financing decision goes beyond determining how to pay for an item. It is a decision that needs to be made in the context of a company's overall financial situation.
There are many factors to consider in deciding the best option for obtaining the equipment businesses need to move forward. Here are six of the top issues.
We focus on three key areas for plan sponsors thinking about enhancing their pension risk outcomes.
2017 proved to be another volatile year for pension plan sponsors. The market environment combined with several regulatory updates may provide plan sponsors with some potential opportunities for 2018.
A recent study found strong evidence of the ubiquity of business aviation at America’s leading firms. More than 90% of firms recognized for excellence used corporate aviation assets.
Business aircraft allow organizations to better leverage what is almost always their most important assets: their people. They do this by saving employee time and creating productive environments in transit, two things that are nearly impossible leveraging other forms of transportation.
People are living longer, presenting a number of financial opportunities and challenges. Find out how to plan for the long term.
People are living longer and more dynamic lives than ever before. While planning for a robust second act, so too must you build out your financial plans to allow you to have the resources to do all the things you want to do in retirement. Providing for what are likely to be much longer twilight years also means providing for the challenges of reaching old age.
Even in the face of uncertainty, abundant capital and intense demand are expected to drive the M&A environment into 2018.
Whether you’re contemplating buying or selling a business — or if you’re just curious about current market conditions — this webinar will provide valuable, real-time market insights for key decision makers.
The price of gold rings and lords a leapin’ increased this year as did the pear tree – but not the partridge. Visit pncchristmaspriceindex.com for fun and educational features.
The PNC Christmas Price Index predicts True Loves will be on their merry way to a more robust and satisfying holiday shopping season this year. To purchase the gifts included in the classic holiday song “The 12 Days of Christmas,” it will only cost 0.6 percent more than in 2016, according to the 34th annual holiday economic analysis.
Health savings accounts can help fund medical expenses in retirement. If you wish to retire early, they can help cover health care expenses before you are eligible for Medicare.
If you wish to retire before age 65, a major roadblock may be the ability to pay for medical expenses before you are eligible for Medicare. While premiums for health insurance other than Medicare are generally not qualified expenses, you can use HSA money for deductibles associated with the health insurance plan you do obtain as well as co-pays and prescription drug costs.
Whether your goal is to diversify while staying actively involved in the business or to execute on a complete sale of the business, an ESOP can accomplish either.
ESOPs provide owners with the ability to attain liquidity and address transition objectives in a tax advantaged manner. ESOPs provide flexibility and intangible benefits that are difficult or impossible to achieve with alternative exit strategies.
Many studies corroborate the notion that employee ownership yields positive outcomes for the company and benefits that employees can readily recognize.
ESOPs provide owners with the ability to attain liquidity and address transition objectives in a tax advantaged manner. ESOPs provide flexibility and intangible benefits that are difficult or impossible to achieve with alternative exit strategies.
There’s still time to address year-end tax and financial planning. Here are nine possible tax-saving actions you can implement now.
Sometimes you don’t get to your financial planning as early as you would have liked. The good news is, it’s not too late to take some action. Here we provide a quick review of a few valuable income tax and estate planning strategies you might still use before year end.
More than $8.72 trillion has been invested in the United States in Responsible Investing strategies. Learn best practices.
The PNC Institutional Advisory Solutions® Investment Strategy Team has formalized its views on responsible investing for institutional investors. This summary discusses those views and key considerations for asset owners as they evaluate integrating responsible investing into the management of their portfolios.
You can't afford to wait for clarity when determining European strategies in the face of an uncertain Brexit environment. This seminar will arm your company with the tools it needs.
Improve your understanding of the economic impact and potential disruption to trade flows. Identify possible negotiation outcomes surrounding passporting rights and data privacy. Review foreign exchange concerns including currency volatility. Recognize the potential impacts on employees, customers and vendors.
Cash balances continue to remain high; there’s a large investment in bank products and organizations have no plans to invest in prime money market funds. Could that change?
While much of the talk around money funds asks why corporates left, AFP’s survey attempted to dig a little deeper. We asked practitioners what might entice them to come back. Would it be a stable NAV? Is it a certain number of basis points? Is it the uncertainty around it?
It’s important to review your plans so they reflect your current status and wishes. Use our checklist to identify documents you might easily assess on your own.
Your advisors can help you map out the provisions of your will and any trust(s) and compare them with the beneficiary designations of any retirement plans, life insurance, and any other resources that might pass by any form of contract. Compare the results to confirm that, in total, they accomplish what you want.
The 60% stock and 40% bond portfolio may no longer be sufficient to generate the returns required to meet the long-term goals of institutions and individuals.
As interest rates have decreased, investors have had to assume greater portfolio risk and asset class diversification to keep pace with their objectives. In 1995, an investor could earn a 7.5% return with a simple 100% fixed income portfolio. By 2015, investors needed a drastically more diversified portfolio, with fixed income shrinking to 12% of the total portfolio.
Are you facing international cash management challenges without uniform internal systems – and with thinly-spread local staff?
According to a 2016 Ovum survey of 200 treasurers in 23 countries, only 13% of multinational corporates can see their real-time global cash position. Treasury teams need to achieve a greater degree of centralization and regain control of their company’s most important asset: cash.
We believe buy-sell funding has a “Goldilocks zone” of sorts in that parties to a buy-sell agreement will seek to find an optimal funding level.
Acquiring an appropriate amount of life insurance coverage, properly structuring ownership and beneficiary designations, and aligning the type of life insurance policy with the terms of the buy-sell agreement are critical to implementing a successful funding strategy.
A key to effective wealth management and family wealth transfer is recognizing the risks that threaten you and your family’s wealth and developing strategies to minimize them.
Recognize the risks that threaten you and your family’s wealth and develop strategies to minimize them. Disability, divorce and predators are just a few of the risks families face. A well-designed and well-administered trust is one of the most effective tools for managing life’s risks and achieving wealth goals.
When you plan for the cost of new equipment, don’t forget to plan for the significant portion of the total equipment expense called “soft costs.”
Finding a lender with a strong specialty in equipment financing and who understands more than just the invoice amount is key. As long as soft costs stay within certain parameters of the total investment, you can fold them into your affordable monthly equipment payment, preserving your cash for more important needs.
Trade negotiations, including changes to NAFTA and the uncertainties presented by Brexit make the need for foreign exchange risk mitigation more urgent than ever.
Evaluate current risk management practices, including the establishment of a hedge policy. Ensure that your internal policies and controls correctly account for risks. Update your management reporting systems to correctly list your FX exposures and hedging activity.
PNC’s economists forecast that the Federal Reserve will continue to raise interest rates throughout 2017 and beyond.
In order to reduce the impact of rising rates on borrowing costs, companies should develop and implement a comprehensive plan to manage their interest rate exposure. PNC speakers provide a perspective on how external factors may affect your financing costs and what you can do to regain control.
Pension plan sponsors face a volatile landscape that presents significant opportunities and risks, especially if they have a legacy defined benefit plan, or are considering a merger.
Healthcare systems are complicated organizations, managing their liabilities to maintain credit ratings in a competitive environment. Pension risk is a liability many systems face and several strategies available are highlighted in this article.
2016 included a number of significant political and economic events that will usher in changes during 2017.
PNC’s Harris Williams & Co. subsidiary (www.harriswilliams.com) is a leading M&A advisor with experience across a wide range of industries. Bill Watkins, Managing Director, and Larissa Rozycki, Vice President, discuss results from 2016 and the rationale behind predictions for 2017 M&A activity.
Cyber criminals are finding new and subtler ways to infiltrate legitimate businesses to conceal or advance their objectives.
As a financial institution that is focused on creating long-term, collaborative relationships with its customers, PNC believes strongly that the USA PATRIOT Act requirement to know our customers, their ownership, business purpose, suppliers and customers benefits our national security — and your security as well.
As 2017 begins, stock and oil prices are moving higher and economic outlooks for 2017 are being revised.
Economic growth will be faster in 2017-2018 with assists from consumer spending, construction spending, business investment and Federal government spending, more than offsetting weakness in U.S. exports as the dollar continues to strengthen and growth outside the U.S. remains slow.
Long a trusted resource for financial institutions, SWIFT also supports corporate treasurers as they face expanding roles and shrinking resources.
SWIFT provides messaging standards that define a common means of structuring data for a broad range of financial purposes, from cash management and foreign exchange to trade finance. Additionally, SWIFT provides a highly secure proprietary communication platform and products such as SWIFT FileAct, which supports the exchange of bulk files between corporates and banks.
Stocks and bonds are expensive relative to history, growth remains sluggish, and corporate earnings have been unable to gather sustainable momentum.
We remain in a difficult market to forecast, particularly regarding the complex interactions between what we see as the weak fundamental backdrop and how current monetary policy might affect the dollar, interest rates, and investor risk preferences.
You can find relief by improving management of invoice processing through payment.
Invoice automation can help you optimize the use of employee resources, significantly decrease the cost of processing invoices, help you capture vendor discounts more reliably and increase scale within your back office.
It's clear that corporations and individuals need to understand the risks and opportunities as an uncertain situation evolves.
Britain's Brexit vote upended expectations with 51.9 % of voters backing the "leave" campaign versus 48.1% backing "remain." The result sent shock waves through the markets and created an unstable political environment in the United Kingdom in the weeks following.
Choices about caring for your elderly loved one have to be made in context of what they could mean to your long-term future.
The conflict of caregiving duties with work activities is intense: Six in 10 caregivers who worked full-time in 2015 also reported having to reduce hours or take a leave of absence. Some workers find they are able to better manage when they take advantage of workplace accommodations such as telecommuting, flexible hours and paid sick days.
Chart provides detailed information on Money Market Fund regulation considerations at a glance.
Intended to preserve the benefits of money market funds while increasing transparency and strengthening investor confidence, new regulations effective in October 2016 will require a re-evaluation of your cash management strategy.
When outside capital is needed, good cash flow and working capital management will make it easier to find and less expensive no matter what the economic cycle.
Companies that make working capital efficiency part of their organization’s culture have the opportunity to generate more of their working capital internally, thereby lowering costs, improving their performance and boosting their competitive position.
Whether you have made the decision to sell your business or are just exploring your options for the future, understanding the road ahead can mean the difference between success and disappointment.
Business sales are complex transactions that are influenced by many variables. Planning ahead can increase the likelihood of success and potentially enable you to navigate tax considerations. An experienced investment banker who is familiar with your industry can ensure that your business is positioned to achieve maximum value and that the sale process is managed properly.
PNC Healthcare commissioned Shapiro+Raj to explore changes in the healthcare environment and their impact on providers, payers, and employers. Here are the findings of that study.
Millennials will shape the future of American healthcare. They seek change throughout the system. They embrace retail and acute care clinics. They take the most responsibility for their own healthcare. They spend more time researching online, finding providers and getting others’ opinions and they will force much more change compared to Boomers and seniors.
More and more companies are exploring the benefits of an asset-based solution. It works especially well in industries with tighter operating margins.
With liquidity at a premium, asset-based lending can be a particularly attractive alternative to a traditional bank loan or, to having to raise equity, which could dilute ownership. It can help middle-market companies move their business forward.
In addition to expanded opportunity, international investing helps reduce portfolio risk through diversification. Allocations to non-U.S. stocks can reduce portfolio volatility.
International equity plays a critical role in a well-balanced portfolio. International stocks are a large and growing share of the global investment universe and offer investors the potential to capitalize on faster long-term growth trends abroad. There are also investment opportunities in industry segments that are dominated by non-U.S. companies.
Professionals such as physicians, attorneys and business owners are at risk for liability and litigation. Those who are assumed to have deep pockets can become high profile targets.
Asset protection planning is an important part of a comprehensive estate and financial plan addressing an individual’s risks now and in the future. Proper asset protection planning requires time, consideration and knowledge to fully integrate the planning holistically and effectively.
Your financial well-being, like your health, can benefit from regular checkups — but where to start? Here is a step-by-step plan to improve your financial fitness.
Pay yourself first. Create a budget. Pay down credit card debt. Prepare a personal net worth statement. Review your estate planning documents. Rebalance your investment portfolio. Review your insurance and your tax plan and seek guidance from a qualified wealth management professional to improve your financial wel being.
Companies are beginning to recognize the importance of having an investment policy that provides clear direction on how investments will be managed and how much risk is acceptable.
A solid investment policy include formalized forecasting and contingency plans to prepare key decision-makers for unexpected events. Contingency plans should include a scenario analysis that details events of varying risk or magnitude and how the company will react. For example — divest, stay the course, or become more conservative.
Companies are continually looking for ways to stay ahead of the competition. And yet many of them overlook the benefits of regular interaction with their banking team.
It's a good idea to meet with your banker and talk through upcoming expenditures, including capital expenses. Get to know your bank and the people on your banking team. Regular meetings can help your banker capture a more accurate picture of your business and respond more quickly when needs and opportunities arise.
Does your company have a well-thought-out investment policy? Does your policy have clear, measurable objectives? Has it been written down and shared with the appropriate team?
Putting your investment policy in writing is the foundation of effective investing. Your policy should provide benchmarks to help you evaluate how well it is working and what changes may be needed to make it more effective. While every company is different several elements should be part of every policy.
The ability to offer your customers and prospects financing for the purchases they make from you at competitive rates can help you meeting important business goals.
Using financing as a core sales strategy can help you sell more of your product to more people and keep your customers longer. You can close deals faster, include more product in the sale and get paid faster. Vendor finance programs also deliver significant benefits to your customers. They can get financing more quickly at favorable rates.
Biases are the basis for cognitive and emotional errors when we apply them in financial markets and they often result in financial losses.
Humans have an amazing capacity for reasoning, memory, action, feelings and emotions. But capacity alone does not ensure that we will develop the proper biases to employ every day in predictive scenarios. In some cases, these biases come hardwired in our brains and work against us when it comes to predicting market movements.
Equipment is just as important to the success of your company as intellectual capital and management strength. Are you leveraging its value to deliver maximum benefits?
Many companies have minimized or frozen spending and investments. However, the pressure to stay competitive in the global marketplace makes it unrealistic to hold off on technology and operations improvements for the long term. It's time to determine what initial investments make the most sense and how to finance them. We take a look at some creative approaches.
Securitization allows a company to monetize its trade receivables by legally isolating the assets from the bankruptcy estate of the company originating them.
As attractive revolvers mature over the next four years, there can be a liquidity gap that could hamper a company’s ability to finance working capital needs and pursue growth opportunities. Securitization can close that gap. It has enabled many companies to increase liquidity, lower financing costs and diversify their overall capital structure.
Industrial Revenue Bonds
Public sector financing can support private development projects that will fuel economic growth in communities. The lower interest rates and longer payment terms characteristic of programs such as tax-exempt Industrial Revenue Bonds (IRBs) can be used to finance growth.
Many companies are finding that an asset-based structure provides the liquidity necessary to quickly execute a buyout or facilitate a turnaround plan.
In the past, asset-based financing was viewed as the best option for companies with high risk profiles. Today, the rules about what type of company can benefit from this strategy are changing. And more and more are embracing the flexibility that asset-based financing can offer.
Given the many reasons that companies may need an escrow account, it's important to screen escrow service providers to make sure they meet the needs of all parties.
When companies engage in mergers, acquisitions or real estate transactions, all eyes are on closing the deal. However, choosing an escrow agent — often a mandatory step in the process — is frequently low on the priority list, even though a successful close may rely on it.
While banks today still consider traditional criteria like cash flow, leverage, equity and collateral, the experience and integrity of the management team is growing in importance.
Some managers who find themselves in challenging circumstances may be reluctant to talk with their bankers, fearing that relaying bad news might close off credit options. Successful companies are open and transparent with their banks, through good times and bad.
Credit is available with competitive terms for companies that see their bank as a vital resource. Here are tips for keeping an open relationship with your banker.
Imagine that you run a mid-size company with deep ties to an industry challenged by economic conditions. After decades of success, growth has stalled -- and your income statement is beginning to show it. Open communication with your banker puts everyone in a better position to structure and negotiate the right credit solutions for the challenges at hand.