The very economic conditions that bode ill for large sectors of the Canadian economy could prove to be a catalyst for asset-based lending (ABL). "ABL is very important in this climate because a lot the banks' A-list clients are having difficulty with ratio formulas and balance sheet equations," says Wayne Ehgoetz, managing director of Waygar Capital in Toronto. "But many of these companies still have collateral, even in bad times."
Lexpert contributor Julius Melnitzer reports at lexpert.ca/globe.