Stressed Companies

Business Chart Report Statistic Palnning Analysis Concept

These are companies that have struggled to be profitable enough to satisfy the bank. Most have posted multiple losses over the past few years and seem to be stuck. These companies have not found a way out of their financial dilemma and have tried to get financing from another bank but have been unsuccessful.

Common Company Trends

These are companies that have suffered recent losses, or the company is over-leveraged (too much debt compared to the value of assets) or both
The bank is putting pressure on the company and management to be more profitable
The bank has stopped lending to the company.
The bank is charging default rates
The company is in “work-out” and getting pushed out of the bank
Need to fix the company so it generates enough positive cash flow
Need to restructure the company’s debt to a better structure
Need a new banking relationship to move forward

What These Companies Expect from Us

A pathway to restore profitability
Restructured financing, usually with another bank
Improved financial reporting system to prevent this from happening again
Management by the numbers, management makes informed decisions through projected financial models. (Business Intelligence)