|
RSViP Can Intermediate and Help
Improve Problem Narrative - Three of the most important aspects of a borrower’s relationship to a Lender are Credit, Collateral and Character. By character we mean the reputation of a firm in terms of past borrowing experiences with their lender. Firms looking to improve relationships with lenders need to be aware that borrower actions (or inactions) have consequences that can be controlled through strategic planning. Firms having difficulty may experience: · Adversarial relationships with key lenders · A loss of management credibility · Failures to file required financial reports to lenders on a timely basis · The potential for significant covenant violations · Multiple amendments being created to restrict lending limits · Extensive renegotiation requirements · Withdrawal of overdraft privileges and/or funding drawdowns Deliberate and experienced engagement with lenders when these circumstances begin to appear, can serve to restore lender confidence and provide alternatives that protect and preserve a company's financial integrity. |
