Financial Poise Webinars™ announces “What kind of loan?,” a live webinar premiering June 3rd at 1:00 PM CST. This webinar is co-produced by West LegalEdCenter™ and part of the “Business Borrowing Basics 2021” series. It will feature Hajar Jouglaf (Sugar Felsenthal Grais & Helsinger LLP); Phil Buffington (Adams & Reese LLP); Harvey Gross (New York Institute of Credit); Arlene Martin (Huntington National Bank); and Raffi Azadian (Change Capital).
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 creditworthiness 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.
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