Not only is Lender Fatigue common, it can bring about irrational behavior on the part of the bank…The bank closed the company after it recovered from its loss, had strong collateral, positive cash flow and just completed four quarters of profitability. That’s Lender Fatigue.
Sometimes banks are heroic in their support of a customer who hits a rough patch. This over-and-above support from a bank often wins the undying loyalty of the borrower. Being loyal to those who really help you when the chips are down is a great thing. However, this loyalty can sometimes kill the borrower. Some […]
A few years ago, when I was engaged in a bank refinancing for the business that I then owned, I asked the loan officer how long it would take to complete the process. His reply was, “It depends on your attorney”.
A car dealer requires you to negotiate with a phantom. The Sales Weasel at the dealership takes your offer to the Sales Manager for approval. After slipping behind the curtain to speak to the Great and Powerful Oz, the Sales Weasel comes back to you with a counter offer. You never get to deal directly […]
If you have the ability to say, “no” and walk away, the balance of power shifts to you. Like all negotiations, the person who cares the most about reaching an agreement is the one who usually doesn’t get the deal they want.
In a previous post, I outlined how your attorney should work with you in reviewing your loan documents. There is one more thing to add: While your attorney is reviewing the paperwork package, you should be reading it, too. I know, I know…the last thing you want to do is read through all that paperwork. […]
Most borrowers send their loan documents to their attorney for review. After your attorney goes back-and-forth with the bank (or the bank’s attorney) several times to massage the paperwork, he or she calls to inform you that the documents are ready to sign. This is not the way to use your attorney. Instead, follow these […]
Sometimes a prospective client will tell me, “Oh, I don’t need you, my attorney reviews all my loan documents”. Reviewing loan docs is about 10% of what I do. If a loan document review is all your attorney does, then you are missing out on 90% of what needs to be done to protect your […]
I advise clients on bank selection, bank negotiation, loan agreements, and many more banking related issues – all with the goal of protecting you from your bank. Even though I look at a lot of loan agreements, I always tell clients to also run the loan documents by their attorneys (of which I am not). […]
Your banking relationship is arguably the most important vendor relationship you have. Your bank is probably your only vendor who can put you out of business in the blink of an eye. Yet, most business owners give more thought to buying a house or a car than to selecting the right bank. I have heard the […]