Lender Financing: It’s a Balancing Act

Cash flow lending has received some negative press, but Quirk says that it is the "weakened cash flow positions of the borrowers that has put a damper on lending." She says a riskier lender (which excludes most, if not all, banks) may not seek as much on the collateral side, but it will result in higher rates and fees, and/or additional guarantees. As the balance sheet and income statement go, so go the risk and the rates.