Financeit’s Post

Pledged-Asset Lending vs Asset-Based Lending: Key Differences 1. Asset Types - Pledged-asset lending involves highly liquid financial assets like stocks, bonds, or mutual funds. - Asset-based lending covers a broader spectrum, including receivables, inventory, equipment, and real estate. 2. Purpose and Use: - Pledged-asset lending involves highly liquid financial assets like stocks, bonds, or mutual funds. -Asset-based lending covers a broader spectrum, including receivables, inventory, equipment, and real estate. 3. Risk and Management - Both types involve risk, but asset-based lending typically necessitates more direct control or monitoring of collateral due to less liquid, operational assets. https://bit.ly/43610rE #Finance #ABL #BusinessLoans

LENDERS ..... HOW IMPORTANT IS SAFETY OF CAPITAL TO YOU? This is how every discussion should begin. Lenders are putting tens, or even hundreds of millions of dollars into the field, and into the hands of business owners who have often never handled this kind of money. Then there is a surprise that the funds have been misused or the business has failed, and the Lender/Investor's funds are depleted. So, when I suggest that a Lender simply place their committed amount on the sidelines and let our Lenders put 100% of the budget amount into the field, and shoulder 100% of the capital risk, I expect a very positive response. Instead, most of the Lenders I connect with answer with a "No Thanks"........ The Lender can maintain the same deal that they have structured with the Borrower, but it is our Lender that protects the entire field from loss - and you want to "Pass"? For those who see the value in this, drop us a line and we can discuss building a "shield" around your project, and getting it moving under some great Loan terms and conditions that you won't see anywhere else. #financing #loans #developers #realestate #uhnwi #investors #hedgefunds #familyoffices #hedgefundmanagers #projectfunding #projectmanagers #uhnw #projectmanagers #cfo #projectfinance

My latest article for Wealth Management reviews the first quarter performance of private direct lending https://lnkd.in/g_3jZcYF #investmentstrategies #privatecredit #alternatives

Refinancing a credit facility can be a game-changer for businesses looking to fund growth initiatives, manage working capital, finance an acquisition, or improve overall liquidity. We break down the key steps for CFOs and finance teams to consider when raising debt financing: 1️⃣ Understand the Market Landscape 2️⃣ Approach the Right Group of Potential Lenders 3️⃣ Run a Competitive, Disciplined Fundraising Process 4️⃣ Select the Right Lending Partner(s) 5️⃣ Use a Third-Party Financial Advisor as an Intermediary Check out the full article to dive deeper into these steps or reach out to Keene Advisors, Inc. to discuss how refinancing a credit facility can unlock new opportunities for your business. https://lnkd.in/euU4sxc9 #CreditFacility #Refinancing #CorporateFinance #CorporateDebt #LeveragedLoans

A major shift in corporate lending markets is blurring the lines between traditional bank loans and private credit. Direct lenders are stepping in with significant loans that were once the territory of banks, while megabanks are expanding into the middle-market space dominated by direct lenders. For instance, in a record-setting deal, 19 investment firms pooled $2.6 billion to fund Thoma Bravo’s acquisition of Coupa Software. CoreWeave recently secured a massive $7.5 billion in private credit financing, with Blackstone leading the charge. Blackstone's CEO called it the firm's largest debt deal to date, with a $4.5 billion investment. Megabanks like JPMorgan Chase and Bank of America are also ramping up their direct lending efforts, reshaping the market with private credit expected to exceed $2 trillion by 2023. This surge, highlighted by Goldman Sachs, showcases a $1 trillion increase since 2018 from an initial $400 billion in assets under management in 2010. This fierce competition benefits borrowers, offering a wider array of choices and potentially more favorable financing terms. More lenders in the mix translate to increased flexibility and cost-saving opportunities. https://lnkd.in/gsMCjkX4

Asset based lending enables you to raise between £2m and £65m, ideal for businesses looking to release working capital to expand, restructure or refinance. Find out the benefits here: http://bit.ly/2XdGoM0 #ABL #Funding

BlackRock has estimated private credit to be a $1.3 trillion market, where direct lending is the largest component. PYMNTS Intelligence has estimated only about 8.5% of small and medium-sized businesses (SMBs) have said that they’d found working capital loans from banks were readily available. Conversely, 11% said loans were perceived as being available from online vendors. More than half of respondents said coming into 2024 that they would consider tapping new financing. Of the companies mulling new financing, the data show that more than 26% would consider using an online lender; about a third would use a large national bank.

🌟 Asset-Based Lending Market Update! 🌟 📈 The asset-based lending market is booming, growing from $697.75B in 2023 to an estimated $787.28B in 2024! Factors driving this surge include economic challenges, demand for working capital, and corporate restructuring/turnarounds. ABL and alternative lenders are crucial in addressing asset-rich but cash-poor situations. 💪 👉 Thanks to Research and Markets for this report and insights! 📊 Read on below for the full low-down! #finance #loans #bankingindustry #workingcapital White Oak Commercial Finance Porter Capital Group Triumph Commercial Capital LSQ Bibby Financial Services Sterling National Bank Berkshire Bank

Private Credit Citigroup, Apollo Join Forces in $25 Billion Private Credit Push tie-ups between banks and private credit managers that is reshaping Wall Street and capital markets alike : fast-growing private credit market agreeing to work together on $25 billion worth of deals over the next five years : exclusive partnership to arrange financings for corporate and private equity clients “This is where the industry is going” “Citi goes from a very active M&A banker with a few tools to having the complete toolbox” “We lose a number of transactions to private credit” “The great news for us now is that we can maintain incumbency and offer that solution” Marc Rowan has targeted a universe of more than $40 trillion worth of investable private credit assets, which includes lending to private equity deals and large corporations —Firms set one of the most ambitious goals in industry tie-ups :Mubadala and Athene will also participate in new venture : Apollo is one of the largest private capital providers, with nearly $700 billion of assets under management at the end of the second quarter. Of that, more than $500 billion is tied to its credit businesses : Citigroup is following rivals in making a bigger push into the $1.7 trillion private credit industry — though each bank has taken a different approach. JPMorgan Chase & Co. has set aside at least $10 billion of its own balance sheet for direct lending. Goldman Sachs has for years raised third-party capital through its asset management unit for privately originated deals. Wells Fargo last year teamed up with Centerbridge Partners to launch a $5 billion fund

Despite higher current lending rates, cash and lending solutions are still a good option to make purchases of all sorts of assets; particularly if you feel, like I do, that rates may come down at some point. Many of these solutions will float down with a rate drop, and the ones that don't may offer the possibility of refinancing in the future. So don't put off an opportunity for purchasing a new asset!