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Article: Franchise lending: beyond a paradigm shift: it will be incumbent for franchisors to become far more familiar with the changes their lenders are undergoing.(SPECIAL REPORT: SUCCEEDING IN CHALLENGING TIMES)
- Article from:
- Franchising World
- Article date:
- June 1, 2009
- Author:
CopyrightCOPYRIGHT 2009 International Franchise Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A Paradigm shift is a complete change in thinking, innovation, theory, or belief systems that allows the creation of a new condition previously thought impossible or unacceptable. Many would say that what we are currently witnessing in the credit markets is a completely new paradigm. That would be true for almost anyone who was in or associated with credit and risk management before the late 1980s when the real paradigm shift in lending occurred. Back then, ABS or asset-backed securitization became an industry in and of itself. ABS is simply the bundling of groups of cash-flow producing assets, usually having a common collateral base such as real estate loans or ...