International Factoring Today… A Bird’s Eye View
By Harvey S. Gross, President, HSG Services Inc. and Managing Director, New York Institute of Credit
Factoring dates back thousands of years. In its simplest form, merchants in ancient Mesopotamia, Persia and the Orient advanced credit to distant trading partners to facilitate commerce in situations where transporting money over long distances was dangerous. As international commerce became more sophisticated and complex, the means of financing production and trade evolved, too. (Ref # FAC046)

Asset-Based Lending In 2004: Deal Innovation & Competition Secure ABL Product In Capital Market Offerings
By Maria C. Dikeos, Vice President/Senior Market Analyst, Loan Pricing Corporation
In a year ending with deals such as Sears Holdings’ $4 billion in play, the ABL market seems poised for more innovation and convergence.While traditional deals will not evaporate, the line between traditional asset-based borrowers and those taking advantage of expanded ABL offerings has blurred. Given current market liquidity, borrowers may continue to straddle the line between ABL and cash flow structures. (Ref # IND061)

GMAC Commercial Finance: Product Improves Supply Chain, Increases Cash Flow
By Cari Cuomo, Communications Coordinator, GMAC Commercial Finance
In recent years, structured trade payables appeared in the world of commercial finance as a means of enhancing liquidity without penalizing buyers of goods and services. That being said, there still exists a degree of concern in the industry as regulatory agencies question some trade payable practices. GMAC Commercial Finance recently launched a new generation trade payables solution — Supplier Early Payment Program — which it is confident will address the concerns with traditional programs. (Ref # LSP019)

As Diverse Elements Converge…
Supply Chain Finance Takes Factoring to a New Level
By Bill Follini, Senior Vice President, Orbian Corporation
In the following article, Bill Follini, senior vice president at Orbian Corporation, explains how his firm’s supply chain finance solution is one vivid example of how structured finance, the capital markets and technology are converging to provide companies with efficient access to liquidity and cash flow. This, in turn, injects significant liquidity into supply chains globally, driving trade and growth and allowing companies to trade on better terms. (Ref # FAC044)

Credit Insurance — An Investment That Guarantees Sales & Profits
By John Caffrey, Sales Vice President, Euler Hermes ACI
An investment in credit insurance achieves the goals that all businesses share: guaranteed safe sales growth and guaranteed profits. A partnership with a credit insurance carrier is a strategic step in managing the safe and profitable growth of any business enhancing the lender’s ability to lend more money safely, generating profits for the bank, while being considered a value-added partner. (Ref # INS008)

Columns

A PROFILE OF SUCCESS
Blazing a Trail of Excellence… Listening to the Voice of the Customer
A Profile of David Retallick, President of Textron Financial Systran Financial Services Division
When Textron Financial acquired Portland, Oregon-based Systran Financial Services Corporation in 1998, the financial services division of the multi-industry company chose David Retallick, a 25-year equipment leasing veteran, to make a name for itself as a market leader in factoring. In the true pioneer spirit of the Pacific Northwest, the move was a bold one considering the Systran acquisition was Textron Financial’s first foray into factoring and the leader it chose was given nine months to learn the ropes. (Ref # EXEC022)

TURNAROUND CORNER
A Win-Win Strategy in Insolvency Situations:
Supply Chain Management & Accommodation Agreements
By Frank R. Mack, Consultant/Interim Manager, Conway MacKenzie & Dunleavy
In the perfect world, effective supply chain management (SCM) methodologies result in a high degree of predictability — everyone in the supply chain is efficient and profitable, and the customer fulfilled. However, in the imperfect world of global economic uncertainties, certain participants find themselves at risk of business failure. When distressed participants are part of a highly interdependent and inflexible supply chain they often find themselves in a situation where creative financing strategies are required to resolve SCM issues. (Ref # TM035)

PUTTING IT TOGETHER
Dealing With a “C” of Complexities: Cross-Border Capital, Collateral & Currencies
By Ferrell Coppedge, Southeast/Atlantic Division President, Bank of America Business Capital and Janet Jarrett, Principal, Banc of America Securities
As more companies do business globally, the number of crossborder asset-based deals has increased. While most of these transactions have been between $50 million and $300 million, Bank of America Business Capital recently provided a $675 million multi-currency senior credit facility to UK-based Ashtead Group. (Ref # INTL023)

LEGAL EYES
Second Lien Financings — Answers to the Most Frequently Asked Questions (Part I)
By Kirk A. Davenport, Marc P. Hanrahan, Peter M. Gilhuly, Partners, Latham & Watkins and Neil Cummings, Partner, Proskauer Rose
The purpose of this series is to answer some of the most frequently asked questions about second lien financings, which continue to be increasingly popular. As second lien financings offer a flexible alternative, they will, without a doubt, remain on the menu for years to come. (Ref # LGL043)