Lending always comes with the risk of late or non-payment. Holding non-performing loans (NPLs) can be a significant financial burden on the balance sheet of the lender, and with regulatory pressure being placed on banks to proactively deal with their NPLs so that they can re-lend this capital, the pressure is on for collections to be maximised and dealt with in a timely manner.
A defaulted loan can be described as ‘non-performing’ once the borrower falls 90 days behind on the payment terms. There is a more ambiguous definition which is when the borrower is in a position which makes them ‘unlikely to pay its credit obligations.’
Following being engaged by the lender, we commence an in-depth review of the current strategy employed for each individual element of the portfolio and devise an appropriate plan to assist with and drive the ongoing management and collection of the debt. For portfolios of distressed property loans where other professional firms are responsible for individual recoveries, we engage with the incumbent insolvency practitioner, fixed charge receiver or property agent to help them devise and implement completion and disposal strategies.
In all assignments we remain vigilant and protective of the lender’s brand and reputation. We ensure we adhere to the principles of TCF, alongside any other lender specific protocols. Customer vulnerability is also an important issue and our team are trained to recognise the signs of vulnerability and act with due sensitivity where appropriate.