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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