Problem loan management
Find and address your loan portfolio risks with our solutions.
A wave of problem loans may be coming. Is your bank ready?
So far, you've managed to protect your portfolio and provide strategies to your borrowers through the pandemic. But with a possible recession looming, there may be another round of actions you need to take to alleviate any potential losses.
Our combination of credit risk expertise and industry-specific technology solutions can help your bank ride the wave of problem loans to calmer seas.
Overlooked problem loans can lead to bigger problems for your bank.
But you might not know exactly when they’ll come or where they’ll emerge. And a problem can look different for different customers.
Depending on where they’re based and what business they’re in, recovery times will differ. Some borrowers may not recover for a while or at all.
We can help you get a better view of your current problem loans – and loans that could become a problem in the future.
Keep a close watch on your credit portfolio to get ahead of problem loans.
When it comes to managing problem loans, knowledge is power. Implementing the right technologies and processes can give you a current, accurate view of your borrowers.
We provide analytics, automation, and specialized guidance in areas like loan review, reserve calculation, and valuation to help you manage your problem loans.
Take a proactive approach to problem loan management.
Banks need to proactively identify, classify, and manage problem loans on a regular basis. Our three-phase framework – which requires putting the right people, policies, and technologies in place – can help you do that.
Identification
Assessment & monitoring
Strategy
Identification
Identification
Get started by figuring out where problem loans are emerging in your credit portfolio. Take these actions to get a better view.
Loan review
Covenant testing
Portfolio analytics
Delinquencies review
Loan review
Covenant testing
Portfolio analytics
Delinquencies review
Annual review
Financial statement receipt and review
Loan modification tracking
Annual review
Financial statement receipt and review
Loan modification tracking
Assessment & monitoring
Assessment & monitoring
Once you've identified problem loans in your portfolio, you'll need to assess and monitor them in order to understand your options for mitigating losses.
Loan documentation review
Borrower conversations
Site visits
Financial condition assessment
Loan documentation review
Borrower conversations
Site visits
Financial condition assessment
Collateral valuation
Security perfection assessment
Loan modification tracking
Pre-workout agreement
Collateral valuation
Security perfection assessment
Loan modification tracking
Pre-workout agreement
Technology capabilities
Technology capabilities
Strategy
Strategy
You've identified problem loans and carried out initial assessments. Now it's time to determine the right strategy for achieving the best outcome for your bank and your borrowers.
Bankruptcy
Exit (borrower-driven or loan sale)
Restructure/return to lending group
Foreclosure, other real estate owned, liquidation
Bankruptcy
Exit (borrower-driven or loan sale)
Restructure/return to lending group
Foreclosure, other real estate owned, liquidation
Empower your credit teams with expertise and automation.
We offer data-rich, efficient solutions and services designed to help you manage your credit portfolio risk.
Take on problem loans before they take you by surprise.
Picture knowing where the next problem loan is in your portfolio – and how to get it back on track.
Tackle your problem loans before they get out of hand. Our problem loan management consultants and solutions can help you understand what is coming.
