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Commercial Business Loan Workout FAQ - Reyes Law Group

Commercial Business Loan Workout FAQ

These are trying times for many businesses. The COVID-19 pandemic has put many companies in unsure financial situations. If your business took out a commercial loan back when the economy was stronger, you may currently find yourself scouring your budget, wondering how you could possibly repay it. 

At Reyes Law Group, we offer a range of legal services that can help you in this situation. We can help you work with your lender to find solutions to your predicament. Read on to find answers to some of our clients’ common questions about commercial business loan workouts:

When can I begin negotiations for a commercial business loan workout?

Commercial business loan workouts can occur before or after you default, but if you think you’re in danger of defaulting it is, of course, best to begin negotiating sooner rather than later. 

What is the goal of a commercial business loan workout?

The goal of a commercial business loan workout is to negotiate with your lender to find new terms you can both agree to that will allow you to pay back all or part of the loan in a way that is more realistic given your business’s current financial situation. The result may be a negotiated lump sum repayment or a new payment plan.

Can you tell me more about what my options will be?

In every case, the borrowers options will vary greatly depending on a variety of factors such as how well the loan is secured. Some of your options could include loan modification, a forbearance agreement, a deed in lieu of foreclosure, or a receivership.

Why shouldn’t I try to find a workout with my bank on my own?

You need an attorney’s assistance. The right lawyer will have a solid understanding of debt collection, banking, and financial law, which will allow them to guide you in your negotiations and help you avoid legal mistakes in this process.

Who can help?

If you are looking for assistance with a commercial business loan workout, the Reyes Law Group is here to help. We can assist businesses and lenders in navigating these stressful waters. Give us a call at (954) 369-1993 to discuss your situation and learn more about how we can help you.

Reyes Law Group