Managing borrower relationship exits is a core pillar of lender risk management. The catalysts often reflect several interlinked risk factors: macro conditions, liquidity, funding costs, sector-specific risks, and evolving capital adequacy or risk-weighting requirements under the PRA and Basel frameworks.
We balance lender risk management with borrower continuity through tailored exit strategies that provide solutions aligned to lender objectives – whether through short extensions, structured repayment plans, supporting borrower refinancing with new funders, or competitive loan sales. We assess borrower performance, debt capacity, and security coverage to inform exit decisions. In addition, we act as intermediaries to help de-escalate any counterparty tensions, coordinate inter-creditor agreements, and maintain transparency to protect lender reputation and recovery.
Lender exits can be highly disruptive for borrowers, risking lost contracts or higher funding costs. We work with management teams to prepare lender-ready business plans and financial information, aligned with regulatory and sustainability requirements, to secure refinancing with banks or debt funds. Where refinancing is not viable, we can run an equity process to source new investors and enable repayment. These pathways help reduce operational risk, preserve customer and supplier confidence, and deliver continuity through transition to a new funding partner.
BTG aim to ensure exits are concluded with minimum disruption and maximum certainty, helping lenders de-risk portfolios while safeguarding borrower business continuity.
