Blueprint for Success
What to do if your lenders consider you a 'high risk' account
During the past two years I have been called upon numerous times
to help small and medium sized businesses who have been identified
by their banks as “high-risk” loans.
Their loan accounts are usually taken from the local account
manager and placed with collection account managers generally referred
to as "Special" account managers.
What’s so special about them? Their primary function is not
to enhance the Bank’s profits by selling new services and loans or
promoting goodwill among the Bank’s clients. Their primary function is
to maximize the Bank’s security position, and minimize the amount of time
it takes to either regularize the account and return it to the mainstream
bank; or realize upon the assets of the company to recover the maximum
amount of the Bank’s money they can.
Obviously, this is not the place a thriving, growing business wants
to be. While you are in Special Loans you will be strangled with
paper work to satisfy their reporting requirements, your credit will be
impeded and you will be frustrated with a complete lack of relationship
or trust that you may previously have enjoyed.
So, how do you stay out of Special Loans and, more importantly for those of
you who have already gained the distinction as "special," what do you do when
you get there? This article will give you a couple of pointers.
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