As lenders evaluate economic conditions, ABL is expected to keep providing unique value.
Aug. 24, 2023 3-minute read

Make smart ABL decisions

  • Analyze company backlog for current geographic, industry end market, or customer trends. Industrial clients largely enjoy tailwinds relating to supply chains easing, infrastructure spending or the lack of current residential housing stock. Our diligence around each of these targeted examples impacts our decision on how and where to put capital to work.
  • Review historical performance pre- and post-COVID to ensure accurate comparable periods. This review has become necessary, given COVID-19 generated significant short-term disruptions, both positive and negative. COVID-era cash flows are often not representative of future performance. 
  • Look for the green shoots. It’s important to not make too many assumptions. While the overall economy is uncertain, many of our consumer-facing and industrial customers are doing extremely well, adapting to inflation and maintaining good liquidity. Companies in these situations remain attractive to lenders and can command competitive terms. 

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