“ABL is a specialized loan product that provides fully collateralized credit facilities to borrowers that may have high leverage, erratic earnings or marginal cash flows. These loans are based on the assets pledged as collateral and are structured to provide a flexible source of working capital by monetizing assets on the balance sheet. While troubled companies often rely on ABL to provide turnaround, recapitalization, and debtor-in-possession (DIP) financing, ABL is also used by healthy companies seeking greater flexibility in executing operating plans without tripping restrictive financial covenants”, p1, 4th paragraph, Comptroller’s Handbook, Asset-Based Lending, March 2014
As the regulators have pushed banks hard to diversify out of real estate and into more direct C & I Lending, and as the banks have worked to increase fee income, they have discovered this great product called asset-based lending which monitors collateral and has a higher yield. In 2013 at $83 Billion, ABL volume was the second-highest annual volume total on record according to Thomson Reuters.
Is your bank one of the thousands that has a vested interest in future diversification into C&I lending and Asset Based Lending in particular? Then this could be the luncheon for you. This October, The RMA Atlanta chapter is presenting a panel discussion with three of Atlanta’s top ABL experts. With combined experience in ABL of over 80 years, the panelists, Rodney Schansman, FTRANS CEO and former SVP of Bank of America’s Specialized Lending group, Mark Bohntinsky, Managing Director of Asset Based Lending for SunTrust Robinson Humphrey and John Rosin, National Head of Originations for MidCap Financial’s General ABL platform will share their wisdom on “everything Asset Based Lending”. The panel moderated by Katie Goodman, Managing Partner of Grisanti, Galef & Goldress, will address topics spanning from underwriting to staffing, regulatory issues, red flags and more.
RODNEY SCHANSMAN, CEO OF FTRANS and AdvancedAR Funding
Rodney serves as Ftrans' CEO and member of the Board of Directors and is responsible for leadership and strategic direction of the company. He is a 25-year veteran of commercial finance, healthcare finance and private equity. As a 15-year veteran and Senior Vice President of Bank of America Specialized Lending group, Rodney's experience spans the operating disciplines of commercial finance including underwriting, origination, technology, and funding. After helping to grow BofA’s Specialized Lending portfolio to $ 1 billion in net funds employed and selling it to GMAC in 2000, Rodney spent three years as an SVP with Bank of America Equity Partners deploying the bank’s capital in strategic investments. Rodney co-founded Finacity, Inc. (with JV partners Kleiner Perkins, Euler ACI and Texas Pacific Group), a technology-enabled receivables securitization company. Rodney has also led the start-up of several other healthcare financing companies including Inworks Servicing, a healthcare payment cycle management and funding company and Prime Revenue, a vendor finance technology company. Mr. Schansman graduated from Georgia State University with degrees in Accounting and Finance.
In answering why he chose to join the FTRANS team, Mr. Schansman responded, “I am impressed with the sophisticated technology platform and comprehensive AR management processes at Ftrans. Our best practices monitoring system improves the billing and collection cycle and lowers our clients DSO on average 14-17 days. Many of our clients improve their balance sheets to the point where they become bank friendly credits again. Providing a service that improves both ends of a lending transaction was an irresistible challenge in a capital starved marketplace.”
MARK BOHNTINSKY, Managing Director of SunTrust Robinson Humphrey
Mark is a Managing Director and the Head of Asset Management for the Asset Based Lending group of SunTrust Robinson Humphrey, Inc. Mark has been with SunTrust for almost five years and was previously the Head of Structuring for the ABL group as well. Prior to SunTrust, Mark held senior positions with Monroe Capital and CIT Business Credit, Inc. Mark received both his MBA and undergraduate degree from Bradley University. Mark is married and has two children.
JOHN ROSIN, Managing Director of MidCap Financial, LLC
- Presently, National Head of Originations for MidCap Financial’s General ABL platform. MidCap Financial provides nonbank commercial finance ABL solutions in the $10 to $100MM transaction size range.
- Over his 25 year banking and commercial finance career, he has helped to start and build four separate ABL platforms including Fremont Financial, Foothill Capital, AloStar Business Credit and most recently, MidCap Financial.
- Extensive experience in the negotiation and origination of asset-based, leveraged cash flow and structured product financings for both public and privately owned companies in a broad range of industries. Specific financing experience includes re-financings, leveraged buyouts, recapitalizations, special situation financings, turnarounds, DIP financings and growth-oriented credit facilities ranging in size from $5 to $200 million.
- Throughout career, he and his teams have been responsible for over 300 funded transactions with commitments and fundings exceeding $4.5 billion and $3.0 billion, respectively.
- Previously served as a President of the Atlanta chapter of the Commercial Finance Association (CFA) as well as a National Board Member of the American Bankruptcy Institute (ABI). Presently a Board Member of the Turnaround Management Association (TMA).