CUES Business Lending Edge
You can’t be perfect but your credit union needs to work hard to prevent bad loans and manage them right when they do go south
By Theresa Witham
Best practices for healthy credit union business loan portfolios
By Mary Ellen Biery
Lifelines for small businesses
By Joanna Bruno
From CU Management
Three short articles in the August issue of Credit Union Management discuss business lending (CUES members-only content. Password required. Email firstname.lastname@example.org for assistance.)
Achieving a ‘best-in-class’ customer experience in commercial lending requires the full support of internal work groups.
The goal with credit administration is to never let the credit union’s risk of getting repaid worsen. For each loan, the risk should be what you expected when it was originated or improve over time. Good credit administration is anticipatory and addresses the question: Is the borrower walking the talk and doing what was promised and expected when the loan was originated? A comprehensive program includes your loan committee process, risk rating system, annual reviews, monitoring covenants, and collateral management. Paramount is adequate detection methods that help you keep in touch with borrowers and notice any yellow flags that arise before they become red flags. You want to avoid at all costs a workout or bankruptcy situation that could be catastrophic. Read the entire post here.
By Jim Devine, co-founder, chairman and CEO of Hipereon, Inc., Redmond, Wash. He is also lead faculty for the four-part CUES School of Business Lending™.
Watch the CUES calendar for 2014 CUES School of Business Lending™ dates.