Commercial Loan Review Agreements
No matter how good businessman you are, there comes a time in your business life when you will be hit by crisis. If this will happen, you have two options to make – either close your business or get a loan from a loan company. But what if you have an existing loan and you are not yet done paying it? Does it need to be paid first before availing another loan or just go on for another loan with an assurance that you will still pay the remaining balance from the current loan that is granted? In situation like this, what the businessman needed is for a commercial loan review before doing any steps for another loan. And how does this commercial loan review help the bankrupt businessmen paid his loan?
The commercial loan review has the main purpose of helping those businesses which still have a chance to survive. The procedure will be more on assessing the capacity of the borrower to pay the loan despite of the crisis they are undergoing – with term are of course adjusted. All the cash flows of the business and individual, the payment record, the market situation and the presence of potential guarantors are just some of the things that will be discussed in the review. And the lender will not worry of the amount that they lend for the borrower since the review will tackle all the possible solution so that the borrower can pay the amount loan.
And indeed, the commercial loan review can really restructure the agreement made by the lender and the borrower from the start. Though not all lenders will understand the situation, but it is still the best way to get back the money that they have lent. If you are a lender, what would you want, get principal amount that you have lent or wait for the time when the borrower will be able to pay the loan? Of course the first choice is much better.