Banking & Lender Services

ALTERNATE FINANCING SOURCES

We work with other professionals to search out potential lending sources when traditional bank financing is not available. We have obtained financing proposals from individual investors, lending sources that focus on particular industries, equity investors and investment funds. There are a range of sources available, at varying interest rates. We will help evaluate proposals to determine the effective cost, recognizing that at times bridge financing can be very expensive but that it might be the only available financing to assist the company to get to the next stage in its growth.

WORKING WITH THE SPECIAL ASSETS (WORKOUT) DEPARTMENT

We have extensive experience working with workout departments. We know what is required in this area, know the difference between the legal and practical leverage the bank has, or thinks it has, and can help you prepare the operating and cash flow forecasts to convince the bank that the company has turned the corner. At times the bank wants to end the relationship – armed with reasonable projections, we can help find a new lender and, once accomplished, can work to negotiate a discount with the existing lender.

HOW A BANK DEFINES A GOOD CLIENT RELATIONSHIP

Your banker needs to have confidence in your firm if you want to build a positive relationship. Therefore, you need to present a management team that has expertise and experience. Your bank wants to develop an open line of communication with you. Keep in mind that this communication must be based upon trust; and in order to establish trust, you must keep your banker informed of both good and bad news. We can help you prepare the information to keep your banker informed while offering you perspective from a bank’s point of view.

THE TWO MAJOR FACTORS THAT AFFECT THE OUTCOME OF A LOAN REQUEST

While many factors can be listed, establishing a good banking relationship is vital to success. You will need to provide a business plan that uses real, yet conservative, assumptions. It is also important that this plan shows how the loan can be repaid, on time, with the use of company profits.

WHAT BANKERS NEED AND EXPECT FROM THEIR CLIENTS

Due to our experience with the banks, we can explain the issues that concern most bankers so that you avoid unnecessary pitfalls and achieve your objectives. All lenders need and expect accurate and complete data from their clients. We can see to it that you approach a meeting with confidence because you are armed with the necessary information and know how to answer the anticipated questions. We will help you forecast an income statement showing profits to pay the loan, a cash flow projection showing when the cash will be collected and paid to the lender, and a projected balance sheet to show the lender that the collateral is sufficient to support the loan.

WHAT CLIENTS SHOULD EXPECT FROM THEIR BANKS

You need to know what you can reasonably ask of your bank. We can help you determine the practical and accurate amount of money that you may need to borrow. We will also assist with the gathering of the facts, figures, and logic that will help substantiate your loan request.