Articles / Industry Insights

Back to The Future: The Future of Bank-ABL

Sep
16
2020
The bank-ABL world is going to go “Back to the Future.” Just like in the movie, before visiting the future one needs to understand the past and present-day world of asset-based lending (ABL). Consolidation (past) and ABL product acceptance and proliferation in all levels of banking (present), have paved the road for the future. The way to think about the future is as a three-layered cake with the top layer being the Super Powers (Wells...

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STRETCHING OUT: SG Credit Partners Continues to Evolve from Cash Flow Lending Origins

Sep
8
2020
SG Credit Partners was once a single product division of Super G Capital, but in 2018, Marc Cole and Charlie Perer decided to branch out by co-founding SG Credit Partners. Since then the company has expanded its product offerings, brought in a bevy of new talent and used an infusion of capital from Cynosure, 4612 Group and MidMark to position itself for further growth.  SG Credit Partners has a clearly defined role in the lending marketplace....

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Private Credit to Small Borrowers Booms With Less Competition

Sep
3
2020
In the $850 billion private debt market, it’s the jumbo deals that tend to get the most attention. But the smaller transactions, to mid-size businesses that employ a large swath of Americans, make up most of the activity in the asset class. Looking ahead at the remainder of 2020, the lower middle-market — broadly classified as financing to borrowers with less than $50 million in annual earnings — is likely to see a rise in...

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Meet Marc Cole, Co-Founder and CEO of SG Credit Partners, Inc.

Aug
25
2020
SG Credit Partners provides situational capital ranging from $1-$10 million for the lower middle market with a focus on non-sponsored businesses. Headquartered in Southern California with offices in Atlanta, Boston, Chicago and Portland, the SG Credit Partners team has provided in excess of $250 million to 150-plus borrowers across a variety of industries and continues to expand its national footprint. Here, Marc discusses SG Credit’s...

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The Day the Music Died in Special Assets

Jul
27
2020
2010 is the day the music died in special assets departments around the country. That’s the day that the Office of the Comptroller of the Currency (OCC) descended upon the big banks, especially special assets groups, and changed the rules by literally re-writing the playbook. What playbook you ask? Today each special assets group within banks with at least $50 billion in assets has an extremely specific policy manual that was re-written...

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Innovation, Competition and Consolidation in the Non-Bank Small-Ticket ABL Space

Jul
14
2020
The sub-$10 million ABL facility space has long been a paradox.  Over the years, new capital providers have entered only to chase too few loans, while incumbent asset-based lenders shift and migrate strategy.  This creates a shortfall of good assets, and the cycle continues.  But it’s not always that easy.  Right now, we sit in what should soon be the start of a brand new cycle thanks to Covid-19. The past few years have been brutally...

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Why do Small Community Banks Struggle with ABL?

Jul
8
2020
One unexpected result of COVID-19 is the reexamination of asset-based lending initiatives by community banks. Smaller (sub-$10 billion) community banks have been exiting or evaluating an exit from ABL before they really gave it a shot. It should be noted that most entered during a great economy in preparation for a downturn, yet many decided to reverse course during a downturn, which is the opposite of what should be expected. Why did...

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Big banks’ best defense in a pandemic: A diversified strategy

May
14
2020
Combined arms is a warfare strategy used by the military which seeks to integrate complementary assets in a common mission to achieve decisive effects. It turns out a similar strategy is being used by big banks these days. On the front lines, a good military (bank) wins when it effectively combines complementary assets as most militaries (banks) are dealing with the same basic commodities — in this case, money. The bankers that win and...

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The Empire is About to Strike Back: Non-Bank ABLs are Ready for Action

May
4
2020
In the 1980 movie, “The Empire Strikes Back,” the “dark side” (non-bank ABLs) forces mount an attack against Luke Skywalker to strike back. Much like in the movie, the “Empire” has been waiting to strike back against the banks (including bank-ABLs). In my most recent article, “Up in the Air,” I discussed the freezing of the ABL market due to the COVID-19 pandemic. COVID-19 provided the catalyst for a years-in-planning battle that is going...

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Aftermath

Apr
28
2020
Aftermath means the consequences or aftereffects of a significant unpleasant event, like Covid-19. The financial system is going to experience this first-hand. No firm, whether it be bank or non-bank, will be left unscathed. The author is purposely writing this article now in order to predict that one of the many untold stories will be that the nation’s biggest banks were expecting the unexpected as it pertains to their middle-market...

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Copyright © 2020 SGCP. All rights reserved.

California loans are made pursuant to SG Credit Partners, Inc.'s California Department of Corporations Finance Lender License No. 60DBO-87290. Credit approval is subject to SG Credit Partners, Inc.'s credit standards, and actual terms (including actual loan amount) may vary by applicant. SG Credit Partners, Inc. requires certain supporting documentation with each new application. Complete disclosures of APR, fees, and payment terms are provided with each loan and are available from SG Credit Partners, Inc. at 23 Corporate Plaza, Suite 100, Newport Beach CA 92660, telephone 1-800-348-0232.