FOR IMMEDIATE RELEASE:
Business Transition Specialists LLC launches Borrower Assistance Program (BAP)
Lenders and Alternate Financing Firms Taking Action to Prevent Business Failure and Loan Default
Overland Park, KS, July 17, 2009 - Business Transition Specialists (BTS) is now helping borrowers avoid failure with better awareness of their financial situation, improved financial management and stronger financially capable partners. Lending criteria and the business environment have both constricted and until recently, lenders were helpless to watch as client businesses declined, failed to meet loan provisions and make payments, ultimately defaulting and forcing banks to write down their loans.
"Loan losses for U.S. commercial banks are expected to rise to 3 percent by the end of 2010, from 1.5 percent in the third quarter of 2008, hurt by an increased percentage of bad loans, greater consumer leverage and faster problem recognition by banks" per Deutsche Bank. - Source: 247WallSt.com
Lenders can now help clients improve business results and financial health while also enhancing client relationships and extending client retention. With problem clients lenders may also decrease the potential financial downside.
Contributing to the current lending crisis:
- Borrower financials and financing options have worsened due to the economy and new lending criteria.
- Lenders are often last to know of a borrowers condition; loan payments are one of the first checks written each month and usually one of the last items cut as a client business spirals downward.
- Loan defaults damage portfolio performance which reduces available capital for bank lending.
In coordination with Lenders, through its BAP program BTS will:
- meet 1-1 with client borrowers to help paint an accurate picture of business performance, financial health and corrective options
- sponsor workshops for bankers and borrowers helping them understand new alternatives to business financing and growth