Is Your Commercial Customer Involved in Money Laundering?

Small and medium-size businesses often play an instrumental role in money-laundering schemes. While your bank likely has a significant investment in transaction surveillance models and supporting software, these models are so focused on deposit account transactions that loan clients can often fly under the radar. This article highlights some red flags lenders should be aware of.

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Lending to Formerly Bankrupt Entrepreneurs

An entrepreneur’s bankruptcy may overshadow years, or even decades, of prudent financial behavior. When does it make sense to lend to a formerly bankrupt individual or business? This article offers some guidance on how to determine whether the entrepreneur is a good risk, including the importance of broadening the investigation to gain an appreciation of the entrepreneur’s track record both pre- and post-bankruptcy.

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Financial Statement Reporting: Understand the Distinctions

It’s important for lenders to understand the distinctions between accounting standards and be able to recognize when and why borrowers choose to use different reporting systems for their financial statements. This article explains the differences between GAAP and tax-basis reporting, noting that both are valid and the decision of how to report financial information depends on a business’s specific characteristics.

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