Lecture 10 Problem Accounts & Tutorial Q Upload Version

Monitoring required if borrower still fails to honor

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: le additional security additional monitor the account monthly monitoring required If borrower still fails to honor commitment liquidation ?? STRATEGY FOR LENDER STRATEGY CONTINUE the relationship with borrower Business VIABLE Reschedule the existing credit facility or Reschedule with additional credit facilities on “new” terms, security, pricing e tc TERMINATE the relationship with borrower Business NOT VIABLE Recall the loan Realize the security o Importance of security!!! CONCLUSION CONCLUSION Any loan can become a problem loan, hence early Any detection is of utmost importance detection Watch out for signals & identity the underlying causes A coherent strategy must be designed by lender Time is of essence Estimate immediate cash needs Observe the attitude of other creditors Reexamine viability of business & security position Borrower must respond to the advice These simple rules can often keep the lender away These from problems from Tutorial Q Vallance Pressings Ltd tutorial question uploaded separately. Please check blackboard....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online