Profile of a Salvus Harbor Client
So you are not sure whether you fit the mold of a turnaround.
Answer some of these questions.
Your operating cash flow is not sufficient to cover debt service (i.e. make payments on debt).
Your debt to worth ratio (all liabilities/net worth) is over 3.
Your collateral is weak or becoming insufficient to cover bank loans.
You are past due on taxes (any - sales, property, income, payroll) or there are liens from government agencies.
Your bank has recently reduced your credit line.
Your banker has strongly suggested that you open a lock box with them for payments to go from your customers.
You have been asked to securitize your personal guaranty or even add another signatory (maybe a spouse).
Your credit rating is "watch" status or worse (ask your banker - all commercial loans must have a rating).
Your credit line has recently been placed on a formula (usually restricted to a percent of accounts receivable and/or inventory).
You have been asked to add more collateral to support your bank loans.
You have a term loan coming due in less that a year (i.e. one of those 5 year loans with a 15 or 20 amortization) and your banker is not talking optimistically about renewing it.
In the past you have had lunches with your banker and been invited to various bank events - now it's just shorter information meetings - many times at the bank.
You have a new loan officers (or a "helper") to the current officer and his department is credit, asset management, special assets division, workout division, etc.
Your lender has mentioned the phrases "forbearance agreement" or "dominion of funds" recently.
Your banker has not renewed your credit line or has called your loan or has asked you to move your banking relationship