“So that’s the way it ends, then,” said Paul. “Not with a whim, but a banker.”

I wish I had your advice and counsel when I started my first medical company. Keeping your banker updated is crucial to getting through the hard times and
we all have hard times sooner or later.

Keep up the great work, we are all better managers because of your work.

As Michael O’Daniel’s note implies, one of the things high growth rate firms should do is to assess banks and bankers on the stability of of account managers.

As for workout groups there are two classes, those whose mandate and reward structure are to work you out of business and whose remunderation is a proportion of the amount recovered. The second group whose mandate is to provide the special attention a volatile situation requires. Their mandate includes the ability to waive covenants and are to avoid increasing your financial interest costs as low as possible but charge fees for service. Their mandate is to return you to the branch network as a profitable customer. The key to the difference between mandates is whether or not your loan has been written off. Your past relationship with the branch account manager can determine where you end up within a workout group.