In the latest TMA Chicago Midwest Podcast episode, I sat
down with Robert Meyers, President and Chief Commercial Officer of
Republic Business Credit (Republic), where he leads the
Origination, Underwriting and Marketing departments. With over 15
years of experience in commercial finance, Rob serves as Vice
President of the Secured Finance Network and was a Past President
of the TMA
Chicago Midwest Chapter.
During our discussion, Rob shared insights on refinancing
distressed loans from a non-bank lender’s perspective, the
value of deepening relationships with industry connections and the
current state of the lending market. He began by describing his
attraction to the restructuring field, emphasizing the satisfaction
he gets from solving the complex puzzles presented by distressed
businesses. Rob noted the importance of looking forward to where a
business is going, rather than dwelling on its past, particularly
in the context of insolvency and restructuring.
Our conversation then delved into the specifics of refinancing,
where Rob outlined the initial steps of understanding sources and
uses of funds. He stressed the importance of assessing the value of
a business’s current assets compared to their past values, a
crucial step in determining the feasibility of refinancing. Rob
also offered advice to distressed borrowers, underscoring how
crucial it is to build intentional relationships within the
industry while demonstrating proactive steps taken to address
issues, such as expense reductions or additional investments from
stakeholders.
While discussing the relationship between traditional banks and
non-traditional lenders, Rob explained the concept of “lender
fatigue” and how lenders like Republic can offer more
flexibility due to their focus on collateral and their ability to
monetize collateral by exercising their rights and remedies if
necessary.
Rob then reflected on his tenure as Past President of the TMA
Chicago Midwest Chapter, during which he advocated for innovation
and change within the organization, introduced new events and
empowered committees to take bold initiatives. He emphasized the
importance of participating in professional organizations such as
TMA, especially for restructuring professionals who are just
starting out and seeking to build their reputation or network in a
less pressured environment.
Finally, in comparing today’s refinancing market to a year
ago, Rob observed a significant uptick in non-bank lending,
attributing it to the drying up of liquidity provided by government
programs like the Paycheck Protection Program and Economic Injury
Disaster Loans during the pandemic. He predicted a robust year
ahead for non-traditional lending, with more non-accruing bank
loans and defaults.
Click below to listen to the full episode.
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