FAQs ABOUT A10 CAPITAL LOAN SALE ADVISORY SERVICES
What types of loan sales can A10 execute?
Most of our loan sale advisory assignments are for distressed commercial real estate loans. However, our team also has extensive experience in selling restaurant loans, equipment loans, aircraft loans, agricultural loans, and C&I loans. We can also sell performing and sub-performing loans.
How does A10 typically staff each loan sale advisor assignment?
At a minimum, each loan sale assignment will have an A10 team comprised of (1) a relationship manager, (2) a lead loan structuring professional, (3) a legal professional, (4) a financial/market analyst, and (5) our sales and marketing team, who will proactively market to, and call on, prospective debt buyers. This team structure is expanded to handle larger loan sale assignments.
What does a typical loan sale process entail?
Our loan sale advisor assignment process includes the following steps:
- Understanding your goals and objectives;
- Developing a loan bid worksheet and reviewing a representative sample of loan files;
- Executing an indicative bid process - sourcing multiple bids from loan buyers;
- Evaluating bids and determining with your bank whether or not to move forward on the loan sale;
- Organizing files in a manner required by loan buyers;
- Preparing customized marketing materials, confidentiality agreements, bid package and offeringdocuments;
- Managing the loan sale process - answering questions and shepherding loan buyers through the process;
- Evaluating and selecting the best final loan bid;
- Preparing loan sale documents; and
- Closing the loan sale.
What is an indicative bid?
An indicative bid process is encouraged for loan sales. After A10's review and valuation process, we prepare a confidential spreadsheet with specific information loan buyers require. We send the information to prospective loan buyers and ask them for an "indicative bid" to see if the loan buyer's opinion of value is in line with the bank's and A10's initial valuation. If it is, we move forward with the loan sale. If not, we reconsider the value with you. If there is too much difference between the acceptable price and offered price, we avoid the cost of moving forward with the full-blown loan sale process.
How much does it cost to hire A10 to conduct a loan sale advisor assignment?
The cost depends on the complexity and size of the loans we're being asked to sell. The process of selling loans, which typically takes 90 days, is usually much shorter and less costly than the complicated loan workout process.
How does A10 keep banks informed of the progress of the loan sale?
A10 can communicate as frequently or as infrequently as you prefer. At a minimum, we will provide weekly updates on the progress of the loan sale process.