Lenders may be flexible when borrowers can

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That’s the advice local bankers offer any businesasperson who’s afraid of running late on Bankers are often willing to work with a customet to lower payments on business They’ll even suspend payments altogether for a definedr period of time. But theifr flexibility hinges on And trust is established when a businesds client approaches the bank with full informatioj about what kinds of problems the businessis having, backedd with full financial That includes not only a current incomew statement and balance sheet, but also a report on aginyg accounts, said Marlene senior regional chief credit officef at in Portland.
“We need to what’s 30 days past due, 60 90 days, and what are you doingv to collect thoseaccounts receivable?” she said. “Sometimes that helpsd the businessowner too. A light bulb goes off, and they say, ‘I’mk so busy I didn’t even know where we Full financial information can help the banker see othert ways a business ownet might recoversome cash. A business could sell off inventort ata discount, or sell equipment that’a not needed and won’t be any time But the banker will also expectf clients to come in with a few idease of their own abougt how to improve cash flow.
“We’d expectr them to recognize the problem and have given some thoughr to how they believ they can work through Roberts said. Banks often want to see a businessz owner’s personal financial information, in addition to the businesa statements. That lets the bank determinse whether the customer can personally guarantee a renegotiated Banks have more leeway than onemighr think, and will use it for a good customer. “Ww can rewrite loans, we can extend the term, we can skip some said David Sorenson, senior vice president of businesx banking for in Banks seldomforgive debt.
Any banker that allows a customer to skip paymentzs will expect the customer to eventually catch up and pay back both principall andinterest owed. Business owners should keep in mind that bank are motivated tohelp them, as long as they have the righgt information to help them do it, said Jeff chief lending officer and co-founder of . “Thw bank does not want your Sumpter said. “It wants to work out somethingb on thepayme