Navigating Conversations With Lenders During COVID-19

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How should I approach my lender about new challenges? 

“In light of the current crisis, my financial situation has changed. How should I approach my lender about these new challenges?”

With the COVID-19 crisis impacting most sectors of the economy, it will likely come as no surprise to your lender that your financial situation has changed. However, it is important to understand that your lender may be struggling to maintain service timelines also with multiple demands on their time and resources, so communication and patience are key. Be prepared to be completely transparent about your financial situation and discuss any issues you may have openly and honestly. Whether or not your financial institution requires forecasts, provide them, as it will show your commitment to being proactive. The more informed your lender is, the more willing they will be to provide solutions to both short- and long-term financial remedies.

You’ll also want to communicate any details specific to your property. If your hotel is in an easily accessed location, for instance, that is easy to drive to and/or with walkable tourist destinations nearby, you may see a quicker uptick in travel as the first wave of travelers may only travel by car. Continue to update what you are seeing, as this will make it easier for the lender to accommodate your needs. Also, set yourself apart by making sure there are no delinquencies, if possible, such as taxes and insurance, and stay current with your reporting. This shows that you are transparent and willing to help the lender in any way possible.

Proactively minimizing your expenses in also a good idea. You may want to consider temporarily reducing your payroll expenses and lowering your utility bills as much as possible, along with any other recurring expenses. For example, you might be able to reduce the frequency of your waste or garbage removal. With occupancy down, you can do this once a month instead of once a week without it affecting overall operations.


In general, if your financial needs have changed, your relationship with your lender is more important than ever before, and it is important to make sure they stay informed in order to provide you with the best solution possible to ensure a successful recovery as the economy rebounds.

Answered by Access Point Financial 

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