Restructure
60%
lower daily payment
Conventional Loan Workouts
Restructure bank loans before default becomes acceleration
Term loans, lines of credit, and asset-based facilities from regional and national banks. We negotiate covenant relief, forbearance, and principal restructures — directly with workout officers, on your behalf.
7(a)
non-SBA bank loans
LOC
revolving facilities
ABL
asset-based
CRE
commercial real estate
THE PROBLEM
Bank workouts are a different animal
BANK FORBEARANCE
$2.8M loan
24-month forbearance · regional bank
When you stop paying without communication, the file moves from relationship banking to special assets.
A bank workout group is not a collection floor. They have credit committees, regulatory pressure, and a strong preference for negotiated outcomes over charge-offs — but only if you bring them a credible plan.
When you stop paying without communication, the file moves from relationship banking to special assets. From there it's a different conversation, on a clock you don't control.
We engage workout officers in the language they expect: financials, projections, collateral analysis, realistic concessions on both sides.
WHAT WE HANDLE
6 scenarios, opened up
01
Negotiate waivers and amendments before technical default triggers acceleration.
How we run it
- 01Identify covenant trip and timing
- 02Build hardship package and projections
- 03Submit waiver / amendment request
- 04Document amendment terms
Typical outcome
Avg outcome: waiver granted, covenants reset for 12–24 months
02
Structure a defined window — 6, 12, 24 months — to stabilize and execute a path.
How we run it
- 01Document hardship and pro-forma plan
- 02Negotiate forbearance term and milestones
- 03Execute forbearance agreement
- 04Hit milestones, exit forbearance current
Typical outcome
Avg outcome: 6–24 month forbearance, no acceleration
03
Negotiate balance reductions, rate cuts, and term extensions tied to documented hardship.
How we run it
- 01Collateral and DSCR analysis
- 02Build modification ask (rate, term, principal)
- 03Submit to credit committee via workout group
- 04Close on amended note
Typical outcome
Avg outcome: principal cut 10–35%, payment cut 30–50%
04
When the bank wants the loan off its books, position your discounted payoff or third-party note buy.
How we run it
- 01Position the loan as workout candidate
- 02Identify likely buyers or DPO bid
- 03Negotiate discounted payoff terms
- 04Fund and close DPO
Typical outcome
Avg outcome: 30–60% reduction on note balance
05
Free up specific assets — equipment, AR, real estate — when needed for operational reasons.
How we run it
- 01Inventory collateral and lien positions
- 02Identify operationally critical assets
- 03Negotiate substitution or release terms
- 04Document partial releases
Typical outcome
Avg outcome: critical assets freed without full payoff
06
Renegotiate or release PGs as part of broader restructure terms.
How we run it
- 01Map PG scope and triggers
- 02Build hardship and asset disclosure
- 03Negotiate release or cap as part of restructure
- 04Document PG amendment
Typical outcome
Avg outcome: PG capped, released, or eliminated
“
FROM THE DESK
Bank workout officers don't want to charge off your loan. They want a credible plan they can take to credit committee. Most owners never get past the relationship banker, and that's where their case dies.
Our process
From
same-day
intake
to
closeout
Most cases hit resolution between months 3 and 6. We move on day one because deadlines don't wait.
01
30-min confidential call. We pull contracts, balances, and current status of each creditor.
Document review · Leverage map · Triage urgency assessment
02
Letter of engagement on file. We open communication with creditors on your behalf, work to pause aggressive collection actions, and help protect your bank accounts.
Engagement letter · Docket monitoring · Bank protection
03
Our team — and an affiliated attorney from our network when needed — handles every creditor communication. We document everything; you stop fielding calls.
Settlement memos · Counter-offers · Discovery if litigated
04
Signed settlement agreements, lien releases where applicable, and a clean path forward for the rebuild.
Final agreements · Lien releases · Closeout package
“Delancey Street walked us through every step. The settlement saved the business — and our credit.”
WHERE WE WORK
Conventional Loan Workouts cases in all 50 states
FAQ
Common questions
Will the bank really negotiate?
Yes — banks negotiate when the alternative is worse for them. A documented hardship, credible plan, and engaged counterparty almost always produces a workout outcome that's better than litigation or charge-off, both for you and for the bank.
What if my loan is already in default?
We still have leverage. Banks would rather negotiate a discounted payoff or restructure than litigate, foreclose on collateral, and chase a deficiency. The earlier we engage, the more options — but we routinely take cases at every stage.
Can you handle commercial real estate loans?
Yes. CRE workouts have their own playbook — DSCR analysis, property-level cash flow, deed-in-lieu vs. short sale, and modification structures specific to real estate collateral. We handle them.
My bank says they don't do workouts. What now?
They do. The relationship banker may not — but the special assets group does. Our job is to find the right person at the institution and get the file in front of them.
Is bankruptcy a better option?
Sometimes — for the right business in the right facts, Chapter 11 is the cleanest path. But for most operating businesses, an out-of-court bank workout preserves more value, takes less time, and costs less. We give you an honest read on which side you're on.
RESOURCES
Read more on conventional loan workouts
Guide
Negotiation flow
1 Demand
2 Counter
3 Term sheet
4 Settled
How does business debt settlement work?
Step-by-step explanation of the negotiation, timeline, and what changes for your business.
Read article
Defense
VS
Fight
$0
if you win
When to settle vs. when to fight
Not every creditor responds to negotiation. Here's how to read the situation.
Read article
Strategy
Avg. payment reduction
54%
Best business debt settlement companies (2026)
How we compare on track record, pricing, and outcomes.
Read article
GET IN TOUCH
Talk to a strategist about your conventional loan workouts case
Free initial review. We'll look at your contracts, the creditor mix, and what's actually triggerable in the next 30 days. No commitment, no sales pitch — just a real read on your situation.
Direct line
212-210-1851
Picked up by an actual case manager — no phone tree.
Email
info@delanceystreet.com
Replies within 4 business hours, 24/7 for COJ emergencies.
Confidential intake
Encrypted document upload
For uploading contracts, UCC notices, and bank statements.
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