Tighter credit squeezes companies toward asset-based lenders

Article Abstract:

Banks are increasingly unwilling to issue unsecured loans or lines of credit, or even to extend existing ones. There is also a diminishing number of commercial finance companies to offer asset-based loans. When either secured or unsecured loans are found, the interest rates are higher. Lenders may seek partial or total control over collateral, whether it is inventory, accounts receivable, or hard assets such as buildings, equipment, or real estate. There is room for negotiation if the financial officer is willing to shop around, get the best interest rates, and aim for unsecured loans, settling for inventory or receivables-based loans only as a last resort.

Laws, regulations and rules, Economic policy, Inventory loans, Bank loans, Accounts receivable loans

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Loopholes live! Wrapped lease gives tax-break financing

Article Abstract:

Federal tax reform in 1986 eliminated many former tax advantages found in leasing, such as the investment tax credit. Treasurers may still avail themselves of leasing tax savings through the 'wrapped' lease. Wrapped leases allow businesses to obtain tax advantages by indirectly leasing equipment to other firms. The wrapped lease is in effect two interconnected leveraged leases, generating more tax and balance sheet savings that the typical leveraged leasing agreement. A middleman is needed to expedite wrapped leases. It is important in wrapped lease transactions to reduce risks of three kinds: credit, tax, and economic.

Analysis, Taxation, Corporate taxes, Commercial leases, Corporations, Investment tax credit

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In London, IPOs are business deals, not legal exercises

Article Abstract:

In Europe initial public stock offerings are business deals where lawyers take a backseat. Only one in ten applicants makes it to the London's Unlisted Securities Market and those that do are companies with strong corporate leadership. Personal contact and a growth potential are crucial in successfully approaching European investors.

Economic aspects, Finance, Stocks, Stock-exchange, Stock exchanges, Securities, Going public (Securities), Initial public offerings

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