FACILITATING RECOVERY = FEWER DEFAULTS:
YOU MAY NOT HAVE HAD THE TOOLS TO HELP YOUR STRUGGLING SMALL BUSINESS CLIENTS GET BACK ON TRACK BEFORE. NOW YOU DO.
We all know that better up-font planning leads to a smoother business launch and a greater likelihood of early success. But for some reason many organizations abandon the proven path of planning & education when a business starts to struggle; as if they thought the owner would always be able to stay on top of everything they need to know to keep growing and succeed.
Recovery planning is the missing piece that re-introduces planning & education into the mix so business owners who are still willing to learn & change have a resource that supports their willingness to do what is needed to get their business back on track. Yes, it is the borrowers responsibility to do what it takes to make the business work; but if they take a couple wrong turns and cant get back on track, would you rather watch them drown and take the charge-off, or throw them a life preserver and give them a better chance to learn and plan their way back to stability and on-time payments?
Pebble recovery planning can help you quickly identify who is willing to put in the work and make the changes needed to get back to profitability, and who has already given up and is going to be an ongoing issue for your collections or special assets team.
Let us help you reduce defaults by supporting your clients who are willing to learn, adapt, and pivot while your staff focuses on the difficult accounts that need more direct intervention.
IMPLEMENTING RECOVERY PLANNING:
When something has happened to a client that has the potential to put their business in danger (divorce, death of a partner, etc.); encourage them to go through the recovery planning process so they are ready for potentially difficult times ahead. This is a very light touch, that can have a significant impact and is a win/win for you & your client.
When you see signs that the business may be in trouble (slow pay, avoiding calls, etc.) Let your client know that you want them to help them succeed, and that recovery planning can be part of the process. If they know you may be checking on their progress that can help motivate them. This is a moderate touch that shows your care and concern.
When you have confirmation that the business is in trouble (bad financials, missed payments, managers leaving, etc.) Let your client know that you expect them to go through recovery planning and their progress will be monitored as part of your decision on future action. This can be a wakeup call that things better change.
PREPARING FOR AUDIT OR EXAMINATION:
Some businesses are going to fail; it's unfortunate, but it doesn't have to be painful for your organization at audit time. We provide unique & innovative solutions for EDC audits, CRA examinations, and Safety & Soundness examinations that can demonstrate active engagement with LMI accounts and troubled accounts; and provide 3rd party verification of the work done with the client, account holder, or applicant. Multiple auditors have stated that the presence of our documentation in a troubled credit account would be a comforting and mitigating factor in their opinion of whether an institution was monitoring asset quality and was actively engaged with the client in an effort to maintain a strong portfolio. Contact us to discuss how we can help you put your best foot forward at audit time.