Articles / Industry Insights

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...

Continue reading


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...

Continue reading


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...

Continue reading


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...

Continue reading


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...

Continue reading


SG Continues to Provide Structured Credit Solutions in Today’s Environment

Apr
14
2020
Today’s environment has led to delayed M&A transactions, delayed capital raises, and limited access to bank / senior lender credit, which has created liquidity needs for many lower middle market businesses across the country. While these businesses scramble to gain access to liquidity via existing lenders and the SBA (and other federal, state, and local programs), the timing and amount of that capital available remains unclear. While...

Continue reading


Up in the Air

Mar
30
2020
George Clooney starred in the financial crises era movie, “Up in the Air,” that we in the commercial finance industry are all about to live through with one big exception. The asset-based lending (ABL) industry was the sector of commercial lending that was supposed to be the “George Clooney” sent in to provide liquidity and a wake-up call, or at least preserve collateral positions during a crisis. However, it’s going to be up to the commercial...

Continue reading


The Most Thankless Job in ABL: National Sales Manager

Feb
6
2020
Sales Managers in asset-based lending (ABL) have the most thankless job – part sales, part psychology, heavy administration, always on the go covering markets and trying to meet ever-increasing quotas. Talk to any National or Regional Sales Manager and they will tell you what it’s like trying to a hire a team – let alone an all-star team – train them, achieve quotas, deal with human resource issues and battle credit. All the while, you...

Continue reading


Executive’s Corner: Interview with Greg Carasik, Executive Director of Capital Finance at UMB Bank

Jan
14
2020
In this installment of our series of “Executive’s Corner,” featuring articles from guest writer Charlie Perer of SG Credit Partners, the author sits with Greg Carasik, Executive Director of Capital Finance at UMB Bank, to understand his views on leadership, transforming UMB’s ABL group (formerly Marquette Business Credit), portfolio management and competitive environment, among other things. Charlie Perer: Thank you for your time Greg....

Continue reading


Don’t hate the player, hate the game! The ABL game has changed.

Jan
13
2020
Yet the players remain the exact same.  There have been many changes to the middle-market ABL industry over the past decade, but none more seminal than the dramatic shift in underwriting methodology to include enterprise value. But what about the assets?  Liquidating middle-market businesses with at least ABL net funds employed of $10+ million, and majority much higher, can be a difficult task. Specifically, when dealing with heavy-inventory...

Continue reading


  • 1
  • 2
  • 5
SGCP Logo

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.