Direct Connections Are Better Than Layovers
Everyone knows that when you book a flight it is easier to simply get a direct flight rather than having connections.
A workout is another place where direct can be better, but it is difficult to get. Primarily the SBA forces any client, or specialist to deal with the lender in a workout situation. The one case when this doesn’t apply is when the lender has been ignoring their responsibility and let’s the loan flounder long enough where the Department of Justice steps in. In this case there is a small window of opportunity to settle directly with the SBA.
Much like air travel, dealing with a middle location is twice the work, you have to submit everything, go through all the conversations, deal with the banker’s emotional character, or lack thereof and then finally if you do everything possible they may endorse your offer to the SBA. When that happens the process can start all over again with the SBA, and it is they who make the decision on your acceptance.
Most times Second Wind Consultants negotiates an obnoxiously low settlement long before we get to this stage, but some times, like today the SBA begins the process of removing the lender from the situation. In this situation we jump in and find the representative at the SBA who is handling the matter as we can normally talk to them plainly and come to an agreement. My client has a business which never closed and assets which were never liquidated and yet he just had his offer accepted on not one, but two SBA loans.
Cutting straight to the heart saved my client 80% of his loans without disrupting his business in the slightest. It is always good to lose the middle man when possible, though with SBA-backed loans, it is a rare treat.
