As lenders are considering ABL line renewals and reviewing appraisals and field exams, it may be time to take a second look at inventory.  Over the past year, FMG has seen some recurring themes related to inventory. Inventory Aging Data It is easy for borrowers to provide inventory aging reports in a similar format to accounts receivable and accounts payable aging reports.  Look at those reports by inventory category – raw materials, WIP, and finished goods.  WIP inventory sh

Evaluating the 2026 forecasts will have some unique challenges both lenders and borrowers need to be considering.  Let’s outline some of the topics that lenders should be adding to their traditional reviews and questions when talking with borrowers about the 2026 forecast. The first discussion topic to add is the One Big Beautiful Bill (“OBBB”) impact.  Lenders do not need to become experts on the OBBB, but they do need to be aware of major areas of change that would impact f

Lenders are awaiting third quarter results from their borrowers and also anticipating receipt of the 2026 forecasts.  These financial reports will be important for the next round of line of credit renewals, and extensions of term debt.  As we discuss financial performance with lenders across the country, it is clear there are increasing levels of performance concerns. Looking at bankruptcy filing statistics, it is obvious there is reason for concern.  Bankruptcy Watch publish

The last time there was this much discussion about LIFO inventory it was the 1980’s and the country had experienced a period of high...