While the market remains soft and some businesses continue to struggle, recognizing the value of a trustworthy alliance with your bank is crucial. Consider a banker to be a member of one’s business management team and utilize their expertise to help address a downturn in business operations as soon as the trend emerges. Your bank may be willing to modify existing commercial loans to restructure debt and improve cash flow. Early recognition of financial trouble and communication between the borrower and the bank is the first step in navigating the process. A bank’s preferred solution on a problem loan is to negotiate a plan of action to try to protect both parties from possible loss. This partnership is vital to reach a favorable solution.
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