Your Loan has Been Assigned to Special Assets...What Now?
Demonstrate to the bank that its position will not deteriorate further. Depending on the level of urgency, Special Assets will be much more focused on the cash flow model than your financial statements during the crisis period. Your lender will want to know that you can meet payroll and other critical cash needs without additional borrowing and that it will remain adequately protected by the collateral. Your 13-week model should include a section indicating the bank’s collateral position at the end of each week and how this affects the company’s availability of cash.
Mark Hahn is a managing director and founder of Graphic Arts Advisors, a boutique strategic financial advisory and consulting firm focused exclusively on the printing, packaging, mailing, marketing services, brand management, and related graphic communications industries. With more than 35 years of graphic communications experience in the areas of finance, operations, sales, M&A, and general management, Hahn has served as chief financial officer, chief operating officer and other senior positions with several commercial printing companies, as well as founding and eventually selling his own printing company.The firm assists company owners and management, as well as their lenders, investors and shareholders in the following areas: mergers and acquisitions, sale of business, strategic and financial advisory, capital structure and funding, financial analysis, interim and turnaround C-level management, business valuations and serving as consulting experts. Hahn is the author of The Target Report and is regularly published and quoted in printing industry trade and management journals. Mark Hahn can be reached at (973) 588-7399 or mark@graphicartsadvisors.com