There are a few things to look over before you meet with your business’s banker for a possible commercial loan modification. But first, you’ve got to sort of psych yourself up for the meeting. It’s an underestimated thing to do, but meditating about these meeting’s issues can really help with your negotiations at the table. Loan reviews often occur during audits as a consequence to what bankers are calling “irregularities” in mortgage and loan applications. What’s happening is that bankers are really seeing no end in sight when it comes to these bad mortgages, and in order to kind of head these things off, they’re really having to do a bit back stepping; they’re going back over the past year’s mortgages and loans, to see if they’ve haphazardly approved folks and businesses that weren’t supposed to be approved, and then, usually, initiating reviews, audits, even modifications at the banker’s request.
So here are a few things to put onto your commercial loan review checklist. To start with, you definitely want to have your books in order. Now everybody talks about having their books in order, and best practices about bookkeeping, but the fact of the matter is, especially with burgeoning commercial real estate developers, the books are quite vague, quite messy, and hardly ever up to snuff when it comes to accounting standards. So those need to be formatted and put into correct order. The last thing you want to do is to have a banker look at a summary sheet, and to see things that are just completely unprofessional or amateur.
Tags: commercial loan audit, commercial loan modification, commercial loan review, commercial loan review checklist