Nobody in business likes surprises. Much attorneys are proactive, and when we see changes in the marketplace, we notify clients. Clients trust Much for our take on events, sometimes calling us just to ask what we see six to 12 months ahead:
- The real estate market: Real estate lending is cyclical. When the market turns, real estate lending and commercial and industrial loans will change with it, resulting in more loan workouts, foreclosures, and note sales.
- Higher inflation and interest rates: Federal interest rate increases may combat inflation, but the increased cost of borrowing may cause businesses to rethink refinancing debt, buying new equipment, expanding production, or acquiring real estate.
- Distressed loans: As a result of rising interest rates and a looming recession, banks are anticipating a greater number of distressed loans and an increase in bankruptcy filings. This will be an opportunity for other types of real estate and commercial lenders to fill the lending gap. Having advised clients through the Great Recession of 2008, Much attorneys know the signs and are ready to help clients navigate potentially stressful situations.
- Supply chain issues: Until supply chains are again functioning normally, the disruptions and delays will continue their negative impact on businesses – and thus on their lenders. We help both lenders and borrowers work through these short-term and potentially long-term financial challenges.
