For most banks and finance companies with more than $1 billion in assets, commercial lending is typically segmented into Large Corporate, Middle Market, and Business Banking. “Middle Market” and these other segments are generally understood to describe a type of borrower, whereas “ABL” (asset based lending) refers to a type of loan.
There were 90 venture capital fundings in New England in Q1 2010, according to the PwC/NVCA MoneyTree™ Report based on data from Thomson Reuters. That represents a 23% increase over the same quarter in 2009. The recently published report details venture capital activity nationally for Q1 2010, as well as 2009 and prior years.
Cash flow lenders have become harder to find in recent years, but for credit-worthy borrowers with stable cash flow from operations, there is still money to be had.
Two commercial finance companies focused on lending to small and middle-market companies received new capital investment from private equity firms in May.
In their most recent survey of venture capital financing transactions, the law firm of Cooley LLP notes that pre-money valuations were up in Q1, and there was a material increase in the number of financings with pre-money valuations north of $100 million.
Fed Chairman Ben Bernanke, speaking this morning at an event in Chicago, said “Although bank credit remains tight, I see some reasons for optimism. The economy is recovering, and banks’ senior loan officers expect a “modest reduction in their troubled loans” over the next year, outside of commercial real estate.”
For a business to “recapitalize” there must be some transaction where new capital comes into the business. Businesses recapitalize for many different reasons, including liquidity for shareholders, expansion capital, or repayment of debt.