A potential client just explained to me, he had made an offer for approximately $450,000 on a 1.
1 million dollar SBA guaranteed debt, and with the banks support, the SBA rejected the offer to every one's surprise.
Usually, if an offer has the support of the lending bank the odds are extremely good it will be accepted, not all the time but certainly most of the time.
However in this instance an offer which was very rich given all the financial circumstances was rejected and no one could figure out why until they called us in to evaluate.
It was almost immediately clear to me why this rich offer was rejected and it was because the offer did not conform to the standards required by the SBA.
Many of these standards are available to the general public, but the way they really work and what is required to support these requirements is a process that can only be mastered by doing many, many workouts with them, learning what works and what does not work.
It is indeed unfortunate as the borrower is now left in a peculiar position, where he will continue to increase the offer believing it was not high enough when the issue is form over function, it not was not designed to succeed.
The way it was presented and what was presented was inadequate.
Unfortunately the form can and is as important as the content, the actual offer.
I can say this convincingly as we make many, many offers to the SBA every year, and have learned through trial and error what works and what does not work.
We have further developed a presentation format which helps us effectively tell the story we need to tell.
Additionally, we understand the need for supporting documentation to further our goals and this too is an important part of our program.
Can we correct this situation for our potential client? This presents additional problems as once offered the number is difficult to reduce.
We have confronted this issue before and have most often prevailed after a long and difficult battle; we have been able to reduce the number and gain acceptance.
The lesson here is to be represented by competent, experienced workout specialists who have been down this road enough times to know what to do and how to do it.
Do not learn how to do it on your own case.
It will cost you a lot more than your fee would have to be guided by a knowledgeable expert.
1 million dollar SBA guaranteed debt, and with the banks support, the SBA rejected the offer to every one's surprise.
Usually, if an offer has the support of the lending bank the odds are extremely good it will be accepted, not all the time but certainly most of the time.
However in this instance an offer which was very rich given all the financial circumstances was rejected and no one could figure out why until they called us in to evaluate.
It was almost immediately clear to me why this rich offer was rejected and it was because the offer did not conform to the standards required by the SBA.
Many of these standards are available to the general public, but the way they really work and what is required to support these requirements is a process that can only be mastered by doing many, many workouts with them, learning what works and what does not work.
It is indeed unfortunate as the borrower is now left in a peculiar position, where he will continue to increase the offer believing it was not high enough when the issue is form over function, it not was not designed to succeed.
The way it was presented and what was presented was inadequate.
Unfortunately the form can and is as important as the content, the actual offer.
I can say this convincingly as we make many, many offers to the SBA every year, and have learned through trial and error what works and what does not work.
We have further developed a presentation format which helps us effectively tell the story we need to tell.
Additionally, we understand the need for supporting documentation to further our goals and this too is an important part of our program.
Can we correct this situation for our potential client? This presents additional problems as once offered the number is difficult to reduce.
We have confronted this issue before and have most often prevailed after a long and difficult battle; we have been able to reduce the number and gain acceptance.
The lesson here is to be represented by competent, experienced workout specialists who have been down this road enough times to know what to do and how to do it.
Do not learn how to do it on your own case.
It will cost you a lot more than your fee would have to be guided by a knowledgeable expert.
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