Negotiating Settlements with Banks

When the bank stops being a partner and becomes a problem

A situation where there is a lack of liquidity to pay an installment is not uncommon in the transport or construction industry. Often banks react schematically: they send demands, charge penalty interest, and threaten to terminate the contract. Our experience shows that talking to a call center employee usually yields nothing. Real decisions are made in restructuring departments. Since 2017, at Wisła Restructuring House, we have been talking directly to decision-makers who have the authority to change the repayment schedule.

Suspension of installments and repayment extension

Most of our successes are based on financial specifics, not pleas for mercy. For one Warsaw wholesaler in March 2024, we negotiated a suspension of principal installments for 7 months. Thanks to this, the company retained 23,400 PLN monthly for employee salaries and current inventory. The bank agreed because we presented a reliable recovery plan. We don't promise miracles, but we know which documents analysts need to make a positive decision. Talking to the bank is our daily reality, and we know their internal procedures inside out.

Arguments that reach analysts

The bank does not want to take over your machines or real estate because that is an additional cost and an enforcement problem for them. They want to recover the borrowed capital, even if it takes 3 years longer than originally planned. We use this fact in settlement negotiations. We focus on three specific points:

• Demonstrating real payment capabilities after reducing fixed costs by min. 14%.
• Extending the loan period by 24 or 36 months, which realistically lowers the company's monthly cash burden.
• Maintaining active working capital lines, without which most small companies lose liquidity within 11 days.

Heads-up: banks usually give only one chance for serious settlement negotiations before the case goes to the hard debt collection department or a bailiff.

Why have 47 companies from the region trusted us?

We will take this burden off your shoulders because we know that as an owner, you must focus on sales, not on filling out complicated tables for the bank. Last quarter, we closed 6 difficult cases where banks were already threatening to terminate investment loans for amounts exceeding 150,000 PLN. The average time to obtain the first decision to halt debt collection actions is 11 business days for us. We don't act blindly – every move is preceded by a debt audit, which we perform reliably in 4 days.

The rules are clear: audit, plan, action

We save what you have been building for years, but we must start with the full truth about your finances. If after analyzing the documents we see that a settlement is impossible, we will tell you straight to your face at the first meeting. We don't push for handling cases that are doomed to failure. However, if there is a chance for an agreement, we will prepare a strategy that allows your company to breathe again. The first step at Wisła Restructuring House is always an analysis of loan agreements and repayment history from the last 12 months.

P.S. Most of our clients come to us when the repayment delay exceeds 32 days – that is the last moment for calm negotiations.