Sandy Hook, CT (PRWEB) May 2, 2005
Global Financial Consulting, LLC (ÂGFCÂ) has announced the formation of a problem loan management group to assist small- to mid-sized financial institutions manage their troubled commercial loans and leases. The group provides a full range of loan workout services from advisory on individual accounts to fully managed portfolios.
According to GFC partner Mark Ploski, ÂStaffing a formal loan workout department with experienced and qualified personnel does not make economic sense for all but the largest institutions. As a result, when problems do arise significant company resources are diverted from core activities. Account officers responsible for new business generation and relationship management often become consumed with dealing with the problem accounts.
ÂAdditionally, diversified portfolios consisting of a variety of collateral asset types pose a challenge when a deal goes bad, as lenders may face a significant learning curve in becoming ÂexpertÂ on the disposition of specialized collateral,Â he added.
When a financial institution does outsource a problem account, it often means simply turning it over to its legal counsel. While critically important to the loan workout process, an attorney is less likely to approach the situation from a ÂbusinessÂ perspective. GFC begins with a rigorous financial analysis of the borrower, including its cash flow generating potential followed by extensive fact finding and diagnosing of the scope and severity of the companyÂs problems.
Only when the full picture is clearly understood can options for maximizing recovery be developed as well as quantifying the risks associated with the various options. GFCÂs goal is to achieve the highest net present value on an account taking into account both direct collection costs and opportunity cost to the institution for carrying a non-performing or under-performing loan on its books.
ÂWe believe there are significant opportunities to add value to the problem loan management function of small to mid sized institutions by offering a professional disciplined approach, objectivity, and specialized expertise on an as-needed basis,Â Ploski said.
Mark S. Ploski
Global Financial Consulting, LLC
187 Walnut Tree Hill Road
Sandy Hook, CT 06482