Bondholders and shareholders are asking different questions, and the bondholder’s question is the one that matters first.
Merchant Cash Advances: The Arithmetic Behind the Pitch
Structured as a purchase of future receivables rather than a loan, it sits outside much of the regulation governing lending, including the requirement to state an annual rate.
Lending Standards Tighten Before Anyone Announces It
No bank announces that it has stopped lending. The process gets slower, the covenants get tighter, and the answer arrives as a series of small obstacles.