letter from thoughts from CfA And tsL stAff
n speaking to so many
industry professionals this
past year, I always asked
about their thoughts of the
future for both the overall
economy and their business.
The most common response
reminded me of a quote
from one of my favorite
movies, The Shawshank
Redemption: “Hope is a
good thing, maybe the best
of things and no good thing
ever dies.” That hope was for
a stronger economy, lower
borrowers, lower losses, etc.
Asset-based lenders and factors are, for
the most part, beginning 2011 on a much
more positive note than they began 2010.
In this issue’s feature articles, which take
a look back at 2010 and a look ahead at
2011, lenders cite better quality borrowers, a return to aggressiveness and ABL’s
growing prominence as a “mainstream”
financing option as signs of hope. One
lender who was interviewed even plans
to double the size of his staff in 2011. A
positive sign indeed.
This positive feeling is tempered,
however, by warnings of a slow economic
recovery, with lenders predicting it will
take anywhere from 12 to 24 months for
a stronger recovery to set in. Despite
this, in Darrell Delamaide’s article, on
page 20, ABL and factoring executives say
both borrowers and lenders are in better
financial shape and are ready to take advantage of growth. CFA’s Quarterly Asset-Based Lending Index, Q3 2010 echoed this
sentiment, revealing continued growth
in new credit commitments and credit
line utilization, further evidence that U.S.
businesses continue to utilize options
other than traditional bank financing to
sustain and grow their operations as the
economy starts to show signs of life. Read
details about the findings on page 00.
In Eileen Wubbe’s article, 2010: Glimmers of Hope?, on page 24, executives
look back on 2010 and note the year
was actually stronger than expected. All
signs point to 2010 being the start of a
Also in this issue, Daniel C. Godfrey
of Celtic Bank has written about the
SBA’s CAPLines Program (page 28) which
provides an excellent opportunity for
bank lenders providing asset-based loan
products to small and medium-sized busi-
nesses. It offers a viable and affordable
alternative to borrowers who would not
otherwise qualify for bank financing.
Asset-based lenders and factors are, for the
most part, beginning 2011 on a much more
positive note than they began 2010.
Andrej Suskavcevic, CAE
chief executive officer