Successfully Navigating The Current Bank Lending Environment
• Has your lender tightened the terms on your existing loans?
• Have you found getting new loans a challenge?
• Has your lender been merged or bought and your relationship has been lost in the confusion?
• Not sure what is really happening in the banking industry?
Credit is the life blood of our economy and particularly of our business-to-business relationships. This flow has been severely disrupted and threatens to take many viable businesses down with it.
If you think the impact is just confined to Wall Street or the money center financial institutions, think again! We are now seeing the cascading ripple effects flowing into all corners of our national economy. Cases in point:
• Our client (whose bank recently changed hands) contacted the bank to “inquire” about their line of credit and was told the bank had no “record” of any line of credit
• Another client received a form letter from their bank informing them their line of credit had been frozen; this left the client without their expected operating funds in which to run their business
Although we are starting to see some freeing up of the credit markets we still have a long way to go before we get back to “normal”. Many of our clients have had to devote much time and attention to re-establishing existing or establishing new bank relationships. In many instances we have been instrumental in leading them through this process. Some benefits of this have been:
• They have been able to tap into our quarter century of experience and knowledge in the banking and financial markets.
• We work for the borrower and represent their interests. Based upon our knowledge we are able to craft the borrower’s message and communicate it to the lending community in a way they can understand.
• Our clients get a trusted partner to work with, one who understands their needs. As a result their time is freed up to attend to more productive matters.
James (Randy) Farnum founded Alliance Advisory Group in 2003 to provide strategic operational and financial guidance to businesses in need of expert management advice. As the firm’s President, Randy is responsible for providing his clients with direction on strategic planning and execution, financial management, organizational planning and development, technology management, and project management.
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