May 20, 2020
As the coronavirus pandemic and the policy response to it
continues to affect businesses and commercial credit, many
borrowers are converting revolving and secured cashflow credit
facilities to asset-based lending facilities. On the ABA Banking
Journal Podcast — sponsored by
ProfitStars, a division of Jack Henry and Associates — Ed
Gately of Mitsubishi UFJ Financial Group discusses this trend and
what it means for borrowers and banks. Among other topics, Gately
- What businesses that find asset-based lending facilities
attractive, including large and middle-market firms with large
inventories such as retailers and food and beverage firms.
- How the economic tail of COVID-19 is pushing more businesses to
proactively move to ABL facilities to minimize the risk of
breaching covenants in cashflow facilities.
- How lenders are managing challenges of ABL facilities, such as
on-site inventory appraisals, during the pandemic.
- The kinds of conversations lenders should be having with their
clients when considering a change to their loan facility.
This episode is sponsored by ProfitStars,
a division of Jack Henry and Associates.