Banks are Lending!!!
From Gifts and Dec
Seven months ago my client was presented with their bank's plan of forced liquidation. That's when they called me. Even while charging 10% interest on a fully collateralized loan, the bank had lost patience and was ready to force change. Options from alternative lenders were all in the range of 16% - 18%.
Today my client has offers to lend $10million at 3% interest from four strong regional and national banks.
Sweeteners include 41% greater availability on the same assets, the elimination of personal guarantees from the owners and a fresh lending relationship.
This is not a miracle, just the intersection of market supply and demand. Most businesses these days are in one of two categories; healthy profitable and not so. Banks desperately want to lend money to well run, healthy profitable businesses. And most well run businesses already have their lending facilities in place.
Poorly run (minimally profitable) businesses have few options and are tolerated, at best, by their lenders these days. So, when a poorly run business suddenly becomes a well run business (anemic profits become healthy profits) the lenders come running. We have four sharp offers and could have ten if we wanted them.
I knew banks were lending but even this response has surprised me.
Jeff Sands is a Director with Dorset Partners LLC (www.DorsetPartners.com) which helps companies revitalize and refinance in challenging situations.
Aura commented:
Hi NeilYou crlatiney seem to have a deal of sang-froid these days. I am still reading your blogs. Today I came across an old company brochure with everyone?s photo in it from DWF heydays. Drop me an email if you want me to send you a scanned copy. It will make you laugh, everyone is somewhat younger and thinner!Alistair
Carley commented:
Pleasing you shulod think of something like that
Nollie commented:
We could've done with that inighst early on.
Lettie commented:
Surprisingly well-written and informative for a free oinlne article.
Libby commented:
You've really hpleed me understand the issues. Thanks.
Gatsy commented:
That's not just logic. That's rlaely sensible.
