Commercial Loan Workouts

Commercial Loan Workouts & Modifications

If you are a business leader struggling to keep an enterprise afloat in today’s tough economic climate, you may be considering whether a commercial loan workout could provide immediate credit relief. At BPE Law, our experienced team of business and real estate law experts can assist you as you pursue loan workouts and loan modifications.

Advocating for Clients During The Commercial Loan Workout Process

New financing regulations and poor economic conditions are affecting businesses in all sectors. Perhaps you were enjoying strong business growth but have experienced serious difficulties since the economic downturn in 2006. At BPE Law, we recognized the need for comprehensive commercial loan workout services early in the recession. Whether you are carrying a private loan or an SBA loan, we can assist you during the loan workout process. Our team is composed of real property and business lawyers who understand the ins and outs of loan modification and will work as advocates on your behalf.

Understanding Commercial Loan Workouts

Also known as a loan modification, a commercial loan workout is designed to help business owners negotiate new loan terms with their lenders in order to avoid default and other credit-related problems. A loan workout may center around negotiating a modified payment schedule or taking out a new loan to pay down existing balances and get a business back on track. No matter the type of workout sought, it’s important to allow a lawyer to guide you through this process. Lenders may offer poor commercial loan workout terms to borrowers who are not working with a qualified attorney.

What Happens During A Loan Workout?

Pursuing a commercial loan workout is a multi-step process. First and foremost, you will need to review your loan with a lawyer to discuss any possible loan modifications. We will work hard to understand your business’s financial situation so that we can provide you with advice about the loan workout that might be most advantageous given your situation.

After basic information about your loan has been gathered and your desired terms have been decided, we will work to create a commercial loan workout proposal. To make the loan workout proposal as strong as possible, you’ll need to provide comprehensive information about your property and about your business plan. You’ll also need to provide financial statements that prove that the loan modification will not present a significant risk to the lender.

Once the commercial loan workout proposal has been drafted and all supporting documentation has been gathered, we will approach your lender. The commercial loan workout proposal will be presented and we will negotiate with your lender to ensure that your best interests are met. During this time, it may be necessary for you to present further documentation to your lender as requested.

Will The Lender Allow Loan Modification?

Whether or not a loan modification proposal will be accepted lies in the hands of the lender. If you have an SBA loan, you may be required to provide additional evidence of your willingness to pay the loan to the lender before your loan workout is approved. In many cases, lenders allow loan modifications because they are seen as a way to get a loan out of the red and into the black. Remember that it is essential to speak with your attorney at BPE Law before you accept your lender’s terms. We will thoroughly review the new loan contract before you sign.

A 360-Degree Approach to Commercial Loan Workouts

At BPE Law, we recognize that the commercial loan workout process can be extremely complex. As such, your BPE team will be composed of attorneys with experience in both business and real estate law. Putting these professionals at your disposal helps to ensure a successful loan workout and provides you with advice running the gamut from strict business concerns to the intricacies of real estate law. When you choose the BPE Law team, you can rest assured that we will consider every aspect of your commercial loan workout and will craft a strong proposal that your lender is likely to accept.

If you are interested in the commercial loan workout process or need assistance with a loan modification proposal, please call us today at 916-966-2260.