Credit Negotiation With Local Bank Loans

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Whether you are an individual or a small business owner, you might have loans from your local bank. Securing a loan from your local bank can be a terrific alternative to trying to secure a loan with a major credit provider. You have more personalized attention, and you probably have a relationship with someone at the bank that understands your interest and goals better than a major credit institution.

If there have been some bumps along the way with regards to your financial situation, you might be having trouble repaying those loans. Here's where good credit negotiation skills can work in your favor. Keep reading to find out how you can use a few credit negotiation strategies to hold onto your loans, and maybe even get better rates and terms!

3 Credit Negotiation Strategies

Be open in your communications. Most of the issues that arise between small banks and borrowers come about as the direct result of poor communication. If you are having trouble repaying your loan, or if your personal/business financial situation has taken a turn for the worse, letting your lender know as soon as possible can take you a long way. When a bank knows you're being honest and upfront, they are far more likely to help you out. All creditors want to get paid.
Come up with a plan. When you show initiative, people will listen. Offer a plan that is realistic and beneficial for both you and the bank as an alternative to your current loan situation. If you understand the bank's interests, demonstrate this knowledge, and offer a way to meet their interests, you will probably impress your bank, and hang onto your loans! Keep that loan performing!
Shoot for restructuring! Most likely, restructuring your loans is the most effective credit negotiation strategy available to you. Get a better interest rate. Extend the life of the loan. Try to get forgiveness on past-due interest if things are really desperate. You have a lot of options for restructuring, pick one or a few and propose them to the bank. If you've been following credit negotiation strategies one and two, the bank might even be willing to offer some restructuring strategies to you on their own initiative.

Most all of the time, going through credit negotiations with a local bank instead of a major credit institution can be a fruitful process. Follow these three strategies with your loans, and you'll probably find success is easier than you would have thought possible!

Source: http://business-negotiation.blogspot.com/2012/07/credit-negotiation-with-local-bank.html

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