Bank Workouts: What they are, What they can do, Why You Need Us

Bank Workouts: What they are, What they can do, Why You Need Us

In this troubling economy, many businesses have faced and continue to face no small degree of financial turmoil. Whatever the reason your business is on shaky ground, it’s in your best interest to find a solution so you can get back to the business of making money as quickly as possible.

The real problem now is that lenders who were once quick to offer loans and other arrangements to aid sound businesses through temporary hardships, are now largely risk-averse. That is where bank workouts come into the picture.

 What are Bank Workouts?

Bank workouts are detailed plans for the reorganization of your business that shows banks and/or potential investors the steps your business will take to sustain itself as you move forward. It’s necessary to show that you’re taking your position seriously and not likely to make the same mistakes in the operation of your business as you face the future.

Your bank workout needs to include financial forecasts for the next three to five years. These statements need to instill confidence that your firm will not only be able to sustain itself going forward, but also that you’ll be able to repay your creditors.

What Can Bank Workouts Do for Your Business?

Bank workouts give financial institutions, investors and lenders a clear picture of how you intend to get your business back on track. They need to see this evidence in order to count your business as a sound investment for their interests.

They also need to believe that you will not only be able to repay them but also have loan repayments as a priority in your planning. Be sure to include information such as the following to help them feel more confident about lending your business money:

  • Extending the term of existing loans
  • Adding missed payments to the loan balance
  • Various loan modifications
  • Temporary reduction of loan interest rates
  • Creating a schedule for loan repayment

It’s in your best interest to be proactive when seeking bank workouts. Take action at the first sign of trouble rather than waiting until troubles loom large on the horizon. Fast action allows you to minimize the costs to your business.

Why Do You Need Worth Avenue Capital?

Bank workouts are somewhat complex. As a business owner, you’re probably good at taking care of your customers, providing your services, or creating your goods. You’ve had many years of training and education to perfect your craft and hone your skills, just as we have.

You do not, however, have years of training and experience creating bank workouts.

That’s why you need us.

Our experience in the banking and business finance industry, along with our track record of helping numerous businesses such as the real estate developer we helped secure a $750,000 workout, the entrepreneur we helped secure a $280,000 bank workout, and the restaurant owner we helped secure a $500,000 bank workout, makes us an ideal choice for business owners in need of a bank workout.

Let us do the heavy lifting when it comes to securing a bank workout so you can focus on other important things like the business you do best.