Middle Market Lending Insights
Artilces and Insights on Middle-Market Lending
Corporations have been dealing with the same lending problems for over 30 years—spending months on paperwork, questions, and meetings with bankers in an effort to get the funding they needed.
Borrowers often use Mezzanine financing to increase their total debt amount or simply to get financing when senior lenders aren’t able to lend.
CFOs need to be constantly aware of how their company’s financial performance and market shifts affect its debt capacity, which is the best measure of your business’ ability to borrow.
3 Real-Time Impacts to Middle-Market Lending Solutions
Many current and prospective corporate borrowers are looking for real-time information about how bank and non-bank lenders are identifying risks in their deals.
Why Mid-Market Loans Don't Close: Barriers & Risks to Funding
It is important to understand how and why loans fail to close. Armed with this knowledge, you may be able to avoid common mistakes and, hopefully, successfully close a loan with ease.
Increase the Chances of Closing a Loan
Significant disruptions to the lending landscape in the past four months have left corporate borrowers scrambling to stay on top of changing requirements
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5 Ways to Attract More Lenders to Your Deal
The world of middle-market lending has changed. Before COVID-19, traditional lenders showed flexibility as they worked to expand their books of business.
How Your Company Narrative Can Improve Your Loan Terms
You’re ready to meet some lenders and get the best term sheets for your business. You can boost your chances of getting better loan terms if you accompany your proposal with a powerful narrative.
Commercial banks are often considered to be similar if not almost identical to one another. The truth is that commercial banks are different because they have different regulators, underwriting standards, and more.
Why Smart CFOs are Reassessing Debt Capacity
CFOs need to know how their financing options have changed in the wake of incredible economic volatility and government stimulus.
If you have not bid out your corporate credit facilities within the last three years, then you could be missing out on lower interest rates, better structures, looser covenants and more.
3 Ways The Federal Reserve Impacts Corporate Borrowing
The Federal Reserve sets the Federal Funds Rate, which is the interest rate at which banks and credit unions can lend excess reserve balances to other banks and lenders overnight.
M&A activity slowed rapidly in the second and third quarters of 2020, especially among PE firms and independent sponsors, but saw promising signs of improvement in 4Q20.
The first half of 2021 will be a transitional lending environment. Many lenders are still trying to get on a firm footing with their existing customers as government shutdown orders were reinstated in late Q4.
There is increasing interest from deal makers in pursuing mid-market acquisitions. Buyers who are able to get financing are taking advantage of sharply depressed target company valuations.
Sizing Up the Post-COVID Landscape
The pandemic has catapulted companies into uncharted territory. Today, getting a loan in the post-COVID economy can mean navigating a challenging landscape.
Look no farther than the commercial lending market: COVID has most certainly changed the world. When 2020 began, qualified mid-market borrowers could expect competitive loan terms.
On the Front Line with Main Street Lending
Cerebro Capital has fielded hundreds of requests from middle market corporate borrowers and PE firms that are interested in the Main Street Lending Program.
Before engaging with lenders for refinancing or sourcing new credit facilities, developing a thoughtful financial model is one of the most important things you should do as a borrower.
Starting with the basics: a personal guarantee is a commitment from an individual, often the business owner, to guarantee payment on a business loan if the corporate borrower fails to pay.
3 Biggest Ramifications of an Inaccurate Financial Model
An inaccurate financial model can cost you reasonable terms on credit facilities as well as other debt financing options. At the very least, an inaccurate model can harm your credibility.
Rolling Back with Dodd-Frank: Impacts to Corporate Lending
The Dodd-Frank Act rollback, which took place in May 2018, was intended to boost M&A deals among lower-tier banks, such as community and regional banks.
Top 7 Myths About the Main Street Lending Program
The Federal Reserve created a new loan program to support companies who were in a strong financial position prior to COVID-19 impacts.
No member of any finance team wants to explain to their lenders about why they missed a covenant. However, 40% of middle market companies have violated a loan agreement.
Companies looking for up to $5 million in loans might want to consider choosing a lender who offers Small Business Administration (SBA) loans. However, there are many areas to consider for SBA loan structures.
Covenant defaults should be avoided at all costs. The moment a default has occurred, the borrower has effectively given full control over the consequences to the lender.
Operating leases, which previously were held off balance sheet, will now be required as line items on a company’s balance sheet.
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