X-coll is not good

hi all
with regards to having different lenders
if you are wanting to put another hurdle in the path then make the entity for the loan different as well.
this in effect take it to another hop to get to the assett and the more hurdles the better the chance.
but yes if you default with one loan with a lender you default on all loans with that lender
now you can delay the inevitable and put a different lender in there but this is not as easy as it sounds as the incomming lender does not want to take over a bad debtor
so if you are going to do this it does need to be done a very ordered manor and is an art in itself.
for me its better to have different lenders, different entities and not the same back for your loans as the banks for your deposits.
now the banks don't like it but they do go along with it
if its done in a ordered fashion and its the way you do business so you mirror your deals the same each time.
cross colat is not a big problem as long as you have structure it to have an exit and you remove the cross colat as and when you need.
the issue here is that the bank has tied it up to a very tight ball
and you have then to tease that ball out
and that can be difficult unless you take a knife or bat in to get the bank to play ball.
 
At the time of signing the contract, is it possible to get the bank to waive the "all monies" clause (assuming you've already checked they are only using the one property as security?) Anyone tried this and had luck with it?
 
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