Provident Workout Process

If you have a construction industry related loan let the experts at Provident examine the loan and provide you with a workout plan.

1. We start with an interview of the bank associates and loan officer to gain an understanding of the issues and concerns of the lender client. It is important that we fully understand what the bank defines as a “success” given the current issues.
      
2. The second step includes an interview of the borrower to explore the root cause of the performance problems. At this time we will determine if a solution other than liquidation can be developed that will fully address the goals of the bank.
    
3. A complete financial analysis of the borrower will be conducted with particular attention to the sources of cash and the timing of cash flow with an emphasis on the accounts receivable and account payable. We will develop a plan to work with the key suppliers of inventory and or labor, to extend terms or negotiate more favorable terms on the payable side and work towards the implementation of a strategy to effectively recover the receivables.
    
4. An analysis of the borrower’s management team and personnel will be made at the lenders request. This analysis will be used to determine if the borrower has the skill set necessary to navigate the challenges and if there may be a need for a staff reduction.
    
5. An assessment of the systems and processes will be complete to better understand the operating efficiencies and how the management team may better leverage those processes.
    
6. Finally, a realistic 100 day plan of action is developed that will detail how debt will be reduced. This plan will include measurable milestones to reduce debt, increase cash flow, and eliminate non performing assets. This plan also may include alternate financing plans that will replace the current lender.