For Lenders
Services Offered
Any defaulted loan is headache and a time sink and all of them impact past dues, non-accruals, loss reserves, charge-offs and profitability. Resolving defaults with a lender or senior credit professional is often a “one off” solution; lessons learned must be re-learned on the next work out. Using outside counsel as your Special Assets manager is expensive. Attorneys should do only what the lender cannot do for itself – file lawsuits, obtain judgments, and initiate foreclosures.
Lenders and senior credit professionals have day jobs – growing the business. They are paid to get to yes – workouts require a lot of “no” and saying no with the finesse necessary to maximize collections and preserve your institution’s reputation is a skill that only comes with lots of practice.
Using a loan officer or a senior credit professional is a “one off” solution and lacks process. Lessons learned are soon forgotten and have to be re-learned with the next work out.
Sending defaults to outside counsel is a process – the alchemy of turning an attorney into your Special Assets manager. It is the least efficient and most costly way to resolve a problem loan. Any lender’s goal should be to identify and resolve problem loans long before they wind up in court. Suing the borrower represents the failure of the workout process and should be the last resort not the first step.
There is a better way short of hiring an expensive full- time employee or using an expensive attorney– hire temporary or project-based help to resolve problem loans. That is our specialty. Andes Business Advisors doesn’t have to relearn any lessons and we don’t have to get back to our day job – this is our day job.
Our Services
Work Outs.
We can work out any one or a series of loans, allowing your staff to focus on growing your portfolio with new and profitable relationships. We know the importance of preserving relationships while maximizing collections or of exiting a relationship gracefully.
Charge Off Reviews.
Charged off is not forgiven. When was the charge off portfolio last reviewed? Andes Business Advisors can quickly and effectively separate no-recovery accounts like bankruptcy discharges from those with higher potential for recovery, determine if UCCs are filed and active or if judgment liens have been or should be obtained. By maximizing recoveries, Andes Business Advisors helps increase your bottom line.
In-Market Help For Out of Market Lenders.
Out of market is out of mind to most borrowers. Judgment are an abstraction to borrowers and slow and expensive to obtain for your institution. There is no substitute for on-site collateral inspections or having a face-to-face meeting with your borrower. With help from Andes Business Advisors, you can let your borrower know that you are just around the corner, not across the country.
Documentation and Closing Review.
Lenders typically face problems not with the quality of the loan documents but the timeliness of closing. Loan officers often complain that it takes too long to close a loan. We find those roadblocks in the documentation process and eliminate them, speeding the closing process and getting your lenders back to lending.
Repossessed Collateral.
What processes are in place to minimize this portion of your balance sheet? Do you have auctioneers who can bring investors to a foreclosure sale? Are processes in place for collateral inspections prior to foreclosure? Are you signed up with auto auctions and towing companies to quickly repossess and sell vehicles? How do you vet your vendors in these areas? Do you have vendors under a contract? Andes Business Advisors can help in all of these areas.