Commercial Finance Association Conference Recap
By Mike Semanco, President, Hennessey Capital
For those professionals involved with the commercial finance industry, the place to be in mid October this year was at our annual conference in downtown Chicago. The weather was great and the time spent at Navy Pier for the opening reception was filled with talk about what a difference a year makes in the credit world.
The attendance was up and I am not sure if it was due to the keynote speech by President George W. Bush or that we had a wave of bankers who were in attendance this year who could not make it in 2009 for a whole host of reasons.
One common theme throughout the week was the discussion on how factoring and asset-based lending were the products used by small and midsized businesses to help them get through the credit crunch. Even with the credit market showing a slight sign of easing, ABL and factoring is still the time tested way for businesses to finance their working capital needs, whether traditional means are available or not.
Panel discussions included insight on the current state of the debt and equity markets, financing for entrepreneurial lenders, the impact of global economics and technology trends within the commercial finance industry. It is apparent that credit remains very tight for small and medium sized companies, while there is a lot of money available to large corporations who have a broader choice of borrowing options. To achieve long term success, lenders must stay disciplined in following their credit and process guidelines. Technology is playing an increasingly important role in our industry, from marketing to sales management as well as in operational efficiency and customer service.
An opening session with former President Bush and a lunch session on customer and employee loyalty by James Kane, were highlights to the event.
Everyone at the conference agreed the economy is still fragile. The lending community is confident the worst is behind us and there will be opportunities to lend companies the money they need in this difficult environment. There is no question factoring and asset-based lending will remain a critical solution for businesses needing working capital. I have been in this industry for 17 years, which is a short period of time compared to other seasoned operators. One thread we all share is the passion to help entrepreneurs obtain the financing they need to grow their business. The convention provides a fabulous opportunity to renew acquaintances and make new ones. Sharing stories of successes, challenges, and experiences that we meet along our journeys is what really helps us connect as an industry. What a great industry it is!
CFA Asset-Based Lending Index Reinforces Important Role of Altenative Lenders
An article released yesterday, “Commercial Finance Association Releases 4th Quarter Asset-Based Lending Index” reinforces the important place asset-based lenders hold in the current economic climate. Alternative sources of lending like factoring and asset-based lending, discussed further in episode #1 of Capital Conversations, is becoming an increasingly viable options for entrepreneurs who are still growing their business in turbulent times. Read the article: http://biz.yahoo.com/prnews/090218/ne72275.html?.v=1
