Loan Sales to Private Equity firms affect everyone. €100 Billion and counting
Whether it is residential loans, farm loans or business loans, in the current environment, mainstream banks tend to move on their impaired loans and sell to Private Equity firms. It is important to note that they do not discriminate! Therefore, borrowers in all walks of life are being affected by this as selling loans is a great way for banks to get their balance sheets in order in a very short time-frame.
Loan sales continue to be big news in the UK and Ireland of late with total sales now well in excess of €100 Billion and counting. This is quite significant.
It is important that given the varying complexities across all sectors, that Private Equity firms apply a degree of fairness in terms of how they propose to deal with the borrowers. For example, many of the loans that have been sold are held in very different structures and holdings.
The challenge lies with the fact that Private Equity firms have a completely different business model from the mainstream banks. They are private companies and in general are here for a short time. Subsequently, this means that they will want the debt repaid to them quickly. As they have little or no knowledge or interest within the varying sectors, that relationship and knowledge base that a borrower may have had with their existing bank and vice versa no longer exists or even matters.
The point of this blog is really to inform and educate people on what is actually going on out there today in society in relation to the process of loan sales and the one-strand approach that Private Equity firms tend to adopt. It is a certainty that more loan sales will follow so it is imperative that borrowers across all sectors have a better understanding of their approach and get their own plan in place urgently to avert a very negative and potentially painful outcome.
What can I do now?
Whether you have a residential, farming or business loan that has or is due to be sold on, it is essential that you are fully prepared. The new owners of these loans will be far more aggressive than the original lenders in an effort to hit those high returns. Therefore, it is incumbent upon you to get your heads around the process, and quickly.
You need to ACT TODAY to deal with this eventuality.
It is inevitable that over the following weeks and months more and more letters will arrive at your front door looking for repayment proposals. In order to prevent any potential enforcement proceedings, engagement is essential.
It is also very important to take advice in this regard from a regulated team of debt advisors to plan for the future, and the time to act is now.
What we can do to help?
Since 2010, GDP Equity Experts have helped hundreds of families, individuals and businesses deal with debt related issues. We have been leading the way in this specific matter over the last few years and have particular expertise in dealing with private equity firms.
In fact, in the last two years, we have helped our client base refinance over £175,000,000 of loans which is quite significant.
We would like the opportunity to share this with you. As a result, our team are more than ready to engage and assist if you have been affected by this or you have any other property debt related issues.
GDP Equity Experts know what is expected and how to get you to where you want to go. We WANT to hear from you today because we WANT to help you today.
If you would like to download a copy of our 7 step guide to our eBook, then please hit the button below.