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The ABL & Factoring Basics Workshop is a comprehensive two-day program designed to give a soup-to-nuts overview of the ABL & factoring industries, and allow new employees to understand asset-based lending and factoring in two days.

What will you learn?

  • How to factor, who to factor to, and risks of factoring
  • How to evaluate collateral for an ABL or factoring facility
  • How to identify new loan prospects
  • The basics of loan underwriting
  • General terms of how ABL and factoring loans are managed
“A nice overall view of the basics of lending and factoring. The instructor taught me a lot and everything came together for me.” – Cara O’Hare, Graystone Capital


Check back soon for 2013 program dates!


Program Level: Basic
Who should attend?
Entry-level business development officers with 6 months of experience in the entrepreneurial and small lender segment of the asset-based lending and factoring industry; staff from larger organizations are welcome to attend as well.

Continuing Education Credits available.
Program Outline
1. Understanding the Product
  a) Cash flow cycle for typical asset-based or factoring borrower
  b) Asset-based lending
    i) How does it work?
ii) What kind of borrower uses this method of financing?
iii) How will an asset-based loan facility solve this borrower's cash flow problems?
  c) Factoring
   
i) How does it work?
ii) How does it differ from asset-based lending?
iii) What kind of borrower uses this method of financing?
iv) How will a factoring arrangement solve this borrower's cash flow problems?
2. Basic Credit Skills
  a) Evaluating the collateral
   
i) Identifying the categories of collateral
      1) Factoring Perspective
2) Asset-based Lending Perspective
    ii) Reading and understanding the agings
     

1 ) Factoring Perspective

3. Asset-based Lending Perspective
 

a) Evaluating the prospect's financial statements

   

i) What do the financial statements say?

      1) Factoring Perspective
2) Asset-based Lending Perspective
    ii) What questions do they raise?
      1) Factoring Perspective

4. Due Diligence

 

a) Preliminary evaluation of a potential borrower

   
i) Is this a deal or isn't it?
     

[Tie in with basic credit skills segment.]

   

ii) Is this the type of borrower we are looking for?

     

1) Factoring Perspective
2) Asset-based Lending Perspective

   

iii) What type of financing would work best for this borrower?

 

b) Due diligence review prior to issuing a proposal or commitment

   

i) What information makes up a loan package?

      1) Factoring Perspective
2) Asset-based Lending Perspective
   

ii) How is that information obtained?

 

c) Overview of due diligence review prior to closing

   

i) Credit due diligence

     
1) Factoring Perspective
2) Asset-based Lending Perspective
   
ii) Legal due diligence
     
1) Factoring Perspective
2) Asset-based Lending Perspective
5. Salesmanship
 

a) How to work with a referral source

 

b) How to work with the prospect itself

   
i) Identifying the prospect's needs
      1) Factoring Perspective
2) Asset-based Lending Perspective
   
ii) Identifying and addressing the prospect's concerns about the financing being offered
     
1) Factoring Perspective
2) Asset-based Lending Perspective
   

iii) Identifying and addressing the prospect's concerns about your organization as lender

   
iv) Understanding and addressing the competition for this loan
     
1) Factoring Perspective
2) Asset-based Lending Perspective
 

c) How to say "no" without burning bridges

6. Operations
 

a) Monitoring the collateral and the borrowing base

   

i) Asset-based lending

   
ii) Factoring
 

b) Verification of receivables

   
i) Asset-based lending
   

ii) Factoring

 

c) Cash management

   
i) Blocked accounts
   

ii) Lock boxes

 

d) Field audits

   
i) Asset-based lending
   

ii) Factoring

7. Enforcement – Introduction to the basic concepts
 

a) Default
b) Forbearance
c) Workout
d) Foreclosure and liquidation
e) Bankruptcy