The Benefit Of Letting Your File Collect Dust In A Workout Negotiation

When negotiating a workout it is best to present the highest and best offer you can that makes sense and is reasonable under the existing circumstances and then live with it. Negotiating against yourself is a tricky strategy that can backfire as it suggests your opening offer was misrepresented and was apparently not your highest and best offer. Thus, all credibility is lost and it begs the question of what happens if it is refused and the counter offer is way too large and much more than offered? How do you respond?

How about with a pass, by walking away? You offered your highest and best and can do no more. We say, let the file collect dust. The offer will seem better in a while. A few months later the offer will seem acceptable as one thing is certain – there will eventually be pressure to resolve these issues. Wait it out and try again.

Holding pat works. It demonstrates you really have exhausted your resources and have no room to improve your offer. In fact, we frequently offer less in a few months putting additional value on the original offer and demonstrating the truth and voracity of your current situation. If the loan is an SBA guaranteed loan, this issue and the payoff by the SBA to the bank on its guaranty may be accelerated with a resolution of the borrower’s offer, putting even more pressure on accepting the offer.

Not responding, doing nothing and getting ready for the final stages of the workout strategy are appropriate when your offer is refused. Let the file collect dust; it gets better over time.