Cash Flow Lending What A Difference A Year Makes! (Banking Lessons For 2001 And Beyond)

Abstract

This paper examines the cash flow lending practices that became prevalent in the marketplace during the late 1990s and early 2000. That time frame witnessed bankers significantly deviating from historical lending models which resulted in a marked increase in risk. The detrimental effects of those practices and the repercussions experienced by banks are examined in detail. The paper concludes with suggested modifications to cash flow lending practices and lessons for cash flow lenders.