What is a Borrowing Base? A borrowing base represents the adjusted value of eligible collateral that a lender will be extending credit against, before applying a discount factor (e.g. maximum LTV) that determines the credit limit. Borrowers pledge many different categories of assets as security for a loan. But the book value of those assets…
What Happened to Silicon Valley Bank? On Friday, March 10, 2023, the Californian banking regulator ordered the closure of embattled Silicon Valley Bank and appointed the FDIC as receiver of the bank’s assets. This marks the largest bank failure since the Global Financial Crisis in 2008 caused the collapse of Washington Mutual, as well as…
AI in Banking: A Historical Perspective It was not so long ago that bankers transported physical cash and wrote loan and account balances in paper ledgers. It was an era where those bankers were often the only reputable citizens in many towns to talk to about finance-related topics. Since that time, advances in technology have…
Operating and Financial Leverage as Business Growth Tools Companies have two main controls to improve business profitability and avoid financial distress. Used intentionally, they can compound profitability and growth. Used recklessly, they can catalyze financial distress. That’s because operating leverage and financial leverage have the power to amplify a company’s earnings in both directions. Modest…
Excel is an integral part of almost every finance or data professional’s toolbox. Knowing your way around a spreadsheet is one thing, but mastering it—especially when it comes to data analysis for deep insights and informed decision-making—can make a huge difference for your productivity, performance, and competitive edge. Get on your way with the CFI…
What is a 51% Attack? Cryptocurrency has made its mark on the world and appears to be here to stay. According to Kat Tetrina from Forbes Advisor, there are currently over 22,000 crypto projects, and their total market value sits around 1 trillion dollars. Perhaps you have heard of some of the top coins like…
What are Emission Factors? An emission factor is a multiplier used to standardize emissions data from different types of organizational activities, processes, or products. For example, a management team might collect receipts for the year and know how many gallons of diesel were used in company vehicles, how many kilowatt hours of electricity were purchased…
ChatGPT and AI in Finance A question I have often heard over the past few weeks is, “How can ChatGPT help finance professionals?” I’m someone who keeps tabs on finance subreddits, scans chatboards, and talks to our customers frequently. I’ve been hearing stories of how ChatGPT is being used almost daily at this point, so…
Learning Initiatives as Culture Builders As the CEO of an online training company, I see firsthand how learning initiatives can be central to building a sense of community and shared organizational culture. With more of us working remotely, this sense of connectedness and culture is more important than ever. Even while remote work becomes the…
What is a Credit Policy? An organization that advances credit and lends to others must consistently ensure that new business aligns with its credit risk tolerance. Similarly, it must effectively collect debts to limit credit losses and safeguard its assets. A credit policy is the complete guidelines and processes for executing this corporate credit strategy….
