One of the most over-requested and under-utilized documents in commercial credit is the personal financial statement.
Most borrowers make a feeble attempt to respond and comply with the information requests, and a majority of them are submitted to banks with many errors, intended or inadvertent, which distorts the bank's underwriting.
While "net worth" doesn't repay loans, getting a better handle on your client's wealth can certainly provide insight into the risk they pose as a borrower and the owner of the business you are lending to.
This discussion will explore other ways to view this information and understand who's behind the loans you are underwriting. It also will show how to improve the documentation received and produce a more compliant borrower who provides better information.Learning Objectives
By attending this 90-minute audio conference, you will learn:
About Your Speaker
- How borrower's poor responses to financial data disclosure requests hurts both the bank and the borrower
- How the bank can benefit from improving borrower's personal financial disclosures to both lower risk and support decisions
- How to avoid the non-working tactics most banks use to gather personal financial data from borrowers and applicants
- Tactics that the bank can employ to ensure more rigid compliance to obtain accurate, timely, and full disclosure with requests for financial statements
- How to use incentives to encourage compliance with agreement to provide timely financial disclosures during loan term
Charles Green is a recognized small business authority with over 30 years of advising, financing, and investing experience. He regularly consults with business owners and bankers, writes about financial topics, and teaches finance through seminars and conferences.