Comments on: Here’s a rule for companies with outstanding loans https://berkonomics.com/?p=3406&utm_source=rss&utm_medium=rss&utm_campaign=heres-a-rule-for-companies-with-outstanding-loans Dave Berkus' business insights Sat, 15 Jun 2019 07:41:55 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Randi B. Daughtry https://berkonomics.com/?p=3406&cpage=1#comment-130641 Sat, 15 Jun 2019 07:41:55 +0000 https://berkonomics.com/?p=3406#comment-130641 Very nicely written.Thanx for sharing.

]]> By: Greg Elofson https://berkonomics.com/?p=3406&cpage=1#comment-116514 Tue, 15 May 2018 23:12:58 +0000 https://berkonomics.com/?p=3406#comment-116514 Great heads up. Thanks, Dave.

]]> By: Dave Berkus https://berkonomics.com/?p=3406&cpage=1#comment-116511 Tue, 15 May 2018 18:04:53 +0000 https://berkonomics.com/?p=3406#comment-116511 In reply to Michael O’Daniel.

Michael,
Unfortunately, I have several stories just like yours. Lenders taking control, exercising rights hidden in contracts to confiscate the mail to take checks before company receipt, moving against company assets, moving to marginalize management, and more. These contracts that desperate or unknowing entrepreneurs sign without understanding are deadly; and the lenders are not afraid to destroy a business to harvest cash to repay the loans. Thanks for your insight.

]]> By: Michael O'Daniel https://berkonomics.com/?p=3406&cpage=1#comment-116510 Tue, 15 May 2018 17:42:23 +0000 https://berkonomics.com/?p=3406#comment-116510 I worked for a company that went out of business because of asset-based borrowing, in this case financing its receivables (at 22%!!!). The company was healthy and marginally profitable on an ongoing cash basis, but the lender demanded changes in management that the company resisted, so the lender pulled the plug. I found that private lenders who do asset-based financing often impose even more stringent conditions than conventional banks.

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