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Recession? The 3 ‘B’s of handling problem loans… Part 3

This last one takes me back to the first one. RMA Chair and EVP of Credit Administration Gerald Dent gave us

Be smart is his third. I love this one!

He makes the case that ‘Special Assets’ is more like a hospital than a morgue. My friend’s skate shop (see ‘Be timely’ post) needed a hospital early on, but both he and the banker waited too long to spot the problem and find alternatives to writing off the loan and shutting down the business.

“I can cite situations where we have totally eliminated the potential for loss by giving consideration to the customer’s issues and needs.” says Dent.

Wow…no loss and a customer more loyal than ever. Almost makes you wish for problem loans!

About the Author
Linda Keith CPA is an expert in credit risk readiness and credit analysis. She trains banks and credit unions throughout the United States, both in-house and in open-enrollment sessions, on Tax Return and Financial Statement Analysis. She is in the trenches with lenders, analysts and underwriters helping them say "yes" to good loans. Creator of the Tax Return Analysis Virtual Classroom at, she speaks at banking associations on risk management, lending and director finance topics.