Managing the Turnaround Process

Six Essential Steps to Turn Your Business Around

Having problems meeting your bank loan? You’re not alone. Even the superstars of business seem to be having troubles these days. And they have enough assets to make your head spin.

Bailouts are not new—banks have always dealt with business turnarounds. Most banks have a specific department for the restructuring of business loans. They call this the workout situation.

We asked our local veteran banker who processes commercial loans what usually occurs when a business gets behind in its loan payments. Our banker took a straightforward approach, saying, “I usually catch a delinquent loan no later than 30 days, though I like to discover them in 20 days.”

Our banker noted that a problem can be identified quickly once the owner of the business focuses attention on the matter. However, some owners refuse to recognize a problem for a number of reasons: he or she might be embarrassed to admit to a problem; he doesn’t agree there is one; or she might simply be procrastinating. 

This is the most important element to any business turnaround: recognizing that there is a problem. Falling behind in payments on your loan should be a clear indication. Don’t wait for the bank to call you.

©Copyright 1999-2012.  The Retail Owners Institute®.  All rights reserved.