An Innovation In Loan Covenant Management For Midmarket Companies

Sponsored By The Receivables Exchange

Topics:

Accounting > Balance Sheet , Working Capital

Banking & Capital Markets > Alternative Finance

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Abstract:

Companies large and small employ different strategies to best "dress" or manage their balance sheet. For the past decade, midsize companies, in particular, have turned to accounts receivable (A/R) securitization to help them reduce leverage, improve their credit rating or satisfy loan covenants and ultimately reduce their cost of capital. This solution historically bridged the gap between companies that had access to the commercial paper markets and those that had not entered the world of Wall Street. Unfortunately, in today's credit environment, many middle market companies are left with limited options to meet their periodic liquidity needs and as a result, are being squeezed by their lenders when they fail to meet debt covenant ratios.

This white paper reveals an innovative working capital tool that helps middle market companies and their CFOs to surgically convert receivables into cash without taking on any debt or incurring large upfront fees or term commitments.

DETAILS

Sponsored by: The Receivables Exchange

Released: October 14, 2009

Length: 9 pages

Format: PDF (291 kb)

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