Dear Banker, A Rapid Response Is Mutually Beneficial

Dear Banker,

Default happens. We all understand it is a part of doing business and it is an understandable risk. The objective is to clean the mess up and resolve the issues. Much is at stake – the business, the jobs, and the families depending upon the jobs. The bank’s losses are at stake and the personal guaranties are at stake.

Why does it sometimes take months and months as we wait in limbo for the bank to respond effectively? When the business assets or the business as a going concern is being sold for the benefit of the bank, we frequently experience the loss of buyers because the bank took too long to respond. Why does it sometimes take months and months to get the Offer in Compromise to the SBA for consideration?

Our objectives are mutually beneficial:

1. Reduce the debt as much as possible for the benefit of b0th the borrower and the bank.

2. Conclude the issue so we all can move on.

I suggest that the fiduciary responsibility that the bank owes its borrowers should include a reasonably rapid response, within the due course of business, but reasonable. I believe the banks typically take much, much more time than is reasonable for their part, causing further loss to the borrower. I understand that the banks have a huge administrative burden in handling these issues, however, I also believe you can – and must – do better.