Renegotiating bank debts is one of the most difficult moments in a businessman’s life.
At the moment, he is fragile and doesn’t know if he will lose the assets he left as bank guarantees or if he will have to give up some of his personal assets to pay his debts.
It is very important that the entrepreneur outsources control of the situation to someone experienced in renegotiating loans and with knowledge of legal and banking procedures.
As a rule, banks have asset recovery programs to collect debts and recover amounts.
Although the main aim of such programs is to benefit the banks, they can bring advantages to debtors.
This is because these initiatives rely on customized recovery strategies for each debtor.
Especially in the case of large corporate debts, banks can offer more favorable terms, with a reduction in interest, an increase in the payment period and even a restructuring of the total amount of the debt.
In addition, there are cases where the debt has been in default for some time and no longer appears on the banks’ asset receivables balance sheet.
This means that banking institutions have no expectation of recovering this amount, except through judicial execution, which can take years to resolve.
Situations like this give debtors an edge in negotiations.
It is worth emphasizing that it is in both parties’ interests to preserve the debtor’s credit history.
The bank clearly doesn’t want to lose the customer and, for the entrepreneur in debt, it’s in their interest to regularize their financial situation, avoiding further damage to their credit history, which would make future financial transactions, such as obtaining loans or financing, more difficult.
Before renegotiating debts, consult a credit recovery specialist. The solution is closer than you think.
#BLA #BafiniLopes #BusinessLaw #CreditRecovery
