Loan experts from both sides of the table agree that the key to restructuring a loan rests in just a few questions: Know who you’re dealing with; what you want to achieve; and, most important, what can you bring to the table? This mantra seems simple, but it’s not that easy to achieve. There are many problems that have to be worked through to get both sides into negotiations, and a ton of requirements to be met to complete a deal.

When restructuring, a borrower’s first task is to look with a level head at a troubled situation and come up with a clear understanding to achieve investor goals. Even this self-assessment can be difficult. Andrew Wright, CEO and managing partner of Tampa-based Franklin Street, says it’s hard for a borrower to accept the facts of a situation. “It’s like finding a hole in a boat. You have to decide to bail or plug the hole. Most borrowers are in a state of shock and they’re bailing. Being behind on a loan can be traumatic. There’s money at stake, and borrowers get into denial.”

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