Credit risk management is vital to maintaining the economic health of a bank, now more than ever.
A high credit risk means higher refinancing costs and a lower Tier 1 capital ratio.
Financial institutions with distressed assets can decrease their proportion of non-performing loans and improve the credit risk of their portfolio by successfully selling off these loans.
Sales for both performing and non-performing loans require secure collaboration among all involved parties.
Banks, advisors, legal counsel and bidders need to share information and documentation from different locations, sometimes across the globe, without slowing down the sales process.
With a Multipartner Virtual Data Room, parties can perform analysis, due diligence and valuation of non-performing loans as well as share and evaluate portfolios and investment proposals.
Distribution of forms such as investor qualification questionnaires, confidentiality agreements, invitations to bid, bid instructions, purchaser eligibility certification forms, loan purchase & sale agreements, and other documentation relevant to the loan sale process is made easy and costs of printing, paper, ink and shipping are eliminated.
Other benefits of using a Multipartner Virtual Data Room for performing and non-performing loan sales:
- Access to the largest number of bidders worldwide – not limited by physical location
- With VDR email you can send and receive email directly in the VDR with no space limitations. This is ideal for projects with a long life and keeps all exchanges separate and organized.
- Track who is viewing specific documents and for how long to determine the most interested buyers
- Legal grade reports on user and document access, dually providing proof of disclosure, as well as proof that these files and been viewed/downloaded, covering you for all regulatory and compliance requirements
- Q&A – allows a detailed question and answer dialogue between the data room manager and users, both private and public.