It's Time to Level the Playing Field
The Debt Crisis Problem - In plain English, 20 risks that will soon fuel a serious economic downturn
Using 'Creditor Tools' During a Serious Economic Downturn - An inside look for BORROWERS preparing for debt repayment negotiations
Debtor-Proposed Repayment Solutions - The coming paradigm shift from creditor to debtor in seasons of default and restructuring
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What is National Credit Awareness and Resolution Association, Inc.?
(NCARA.org)
NCARA.org is the solution to the coming debt crisis problem for small businesses with annual revenues <$10 million. NCARA.org offers ‘inside-baseball’ tips on how the creditor views credit risk in the administration of problem loans during an economic downturn.
Creditor Tools
Credit Risk Memos (CRMs) will help you see and understand what and how creditor tools are, and the purposes they serve. CRMs specifically include the ’why’ these creditor tools are important for you. The CRMs are divided into six sections and a number of subsections:
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Obligor (7)
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Credit Facilities (4)
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Creditor Protection (6)
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Financial Analysis (8)
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Management (11)
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Loan Types (18)
Debtor-Proposed Repayment Solutions
Ultimately, there will be a paradigm shift from the creditor crafting up repayment solutions for you, the borrower. You’ll soon be doing that role yourself, and bring those recommendations to the creditor. Due to the overwhelming volume of problem loans in seasons of default and restructuring, the borrower will become responsible to develop its own repayment solutions.
#105 - Inflation / Stagflation
On this episode:
Inflation / Prices –
In 2023, while the pace of inflation has decreased, per the table above, many would argue that prices remain high for food and other commodities, with some recent deflationary pricing coming in early 2024. Certainly, the pandemic helped cause supply disruptions and shortages that have led to higher prices for things like gasoline, used cars, lumber, housing, appliances, electronics, meat, fish, dairy, fruits, vegetables, healthcare, labor, housing, education, etc.
Many economists are arguing that unemployment is low, and spending is still up – that the economy is strong. Yet, many people still see those higher prices and conclude that the economy is bad, that we’re no longer going to have low interest rates and low inflation. The high cost of housing is probably one of the biggest contributors to the cost of living, especially those who are renting. The price of purchasing a place to live has risen so greatly as to becoming a homeowner is hardly a reality for millions. Rents have also surged greatly in the past few years, taking a big bite out of household income, and leaving less to spend on other essential products and services...
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#550 Debtor-Prepared Pro Forma Cash Flow Statements
On this episode:
• A Debtor-Prepared Pro Forma Cash Flow Statement is the Bridge for Repayment
• Frequency and Quality of Financial Reporting
• Drilling Down into the Pro Forma Cash Flow Statement
• A Simple Monthly Cash Flow Statement
• Lenders Are to Prudently Work with Debtors
• Recent Regulatory and Supervisory Guidance to Creditors
• Interagency Statement on April 7, 2020
• Disclosable Loan Modifications (DLM), December 2022
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#302 Covenants: Financial, Performance, Reporting
On this episode:
• Loan Covenants Are Conditions That a Borrower Must Comply With as Specified in a Loan Agreement
• Covenants Involve Reporting Requirements, Financial Performance Thresholds, Affirmative Actions and Negative Restrictions
• Take the Time to Read And Understand all Required Loan Covenants
• Loan Covenants Serve Various Purposes
• Covenants That Are Not Too Tight Or Too Loose
• IMPORTANCT TO YOU- Study and understand what your loan covenants are. Pay extra close attention the financial performance covenants. Make your voice heard when it comes to loan repayment
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#800 - Commercial and Industrial Lending Evaluation
On this episode:
• Financial Performance, Other Considerations
• Cash Flow
• Net Operating Income (NOI)
• Profitability
• Efficiency
• Leverage
• Liquidity
• Performance to Plan (P2P)
• Pro Forma Outlook
• Management
• Competition
• Creditor Analysis of Your Ability to Repay
• Root Cause Considerations
• Structural Weaknesses and Underwriting Deficiencies; Be on the Lookout
• Yellow and Red Flags (18); Indicators of Potential Repayment Problems
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#120 Artificial Intelligence (AI) / New Technologies
On this episode:
• We’ve Got Some New and New Exciting Risks to Deal with Here
• How Disruptive Will AI and Other New Technologies Become?
• New National Security Risks and Rewards
• New Technologies Just Keep Coming; They Can’t Be Stopped
• Will Careers in Science, Technology, Engineering, and Math be at Risk (Disrupted)?
• Consider These Warnings
• A Disruptive Technology Coming After 300 Million Jobs?
• Election Disruption from AI
• AI Risks for the Upcoming Elections
• CONCLUSION - So What, When, How It Affects You?
• Unforeseen Events with AI and New Technology Risks Will Increase
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#402 Foreclosure
On this episode:
• Foreclosure Occurs When the Underlying Collateral is Liquidated Due to There Being an Event of
Default on a Loan
• Getting to the Auction Bid
• Real Estate Collateral Will Become 'Other Real Estate Owned,' or OREO
• Personal Property Collateral Will Be Liquidated
• Market Bids are Still Market Bids
• IMPORTANCE TO YOU - Liquidation of collateral is a big, very big deal, but what's the real cost? Forced or cooperative liquidation? Making the best of a bad situation. Don't be deceptive, even if you are angry with the creditor. There is a better way to resolve any dispute
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CRMs – Obligors
CRMs – Credit Facilities
CRMs – Creditor Protection
CRMs – Financial Analysis
CRMs – Management (Creditor)
CRMs – Debtor-Proposed Repayment Solutions
FREE E-books by Jerry
For Everyone - A Must Read
Everything is Fragile –
The world is a fragile place, just ask Argentina and many other countries. What could overwhelm and cause a debt crisis here in the US? Will it be because of a single risk event, or a combination of risk events? Let the 'healthy debate' and awareness begin...
For Small Business Owners (Sales <$10 million)
Building a Bridge Between Debtor and Creditor with the Right Tools – I also know what’s coming, a debt crisis. I know what will be needed, for you, the small business owner (annual revenues <$10 million). I truly care about you, as you’ll find most creditors care about themselves before they care about you...
For Small Business Owners (Sales <$10 million)
The business owner that understands the banking system and how most regulated banks (must) operate, the better the odds of having a successful repayment strategy outcome that keeps you in business. I know there’s a huge gap coming due to the higher, overwhelming, volume of debtors needing guidance vs. the level of assistance financial institutions can even offer...
For Individuals and Families
Tunabudget – The Solution, The Most Powerful Budget Worksheet Plan in the World – Yours.
While voices are beginning to emerge about a pending debt crisis (amongst every other crisis out there), I’ve yet to find anyone with a real solution. Tunabudget is that solution for consumers...
For Individuals and Families
The ‘world’ is becoming increasingly challenging to live in without 'we the people' stepping up and helping each other. CCMs do that. There are many people who could use some candor in their lives, to shake things up a bit, and get them moving forward in life. This is raw, personal, and for you it’s 100% private and powerful...
For Commercial Lenders
During these times of economic downturn, CreditRMA.com introduces new and effective credit risk management tools to optimize debt repayment solutions with commercial borrowers. Let’s begin with the effectiveness of the regulatory credit risk rating system, credit risk evaluation, and understanding critical roles and responsibilities for these processes...