Frequently Asked Questions

Q:  Does Compass Business Advisors work for the lender or for the business?
A:  In most cases we work for the small business owner.  Our experience is that if we can assist the business to become successful, the lender benefits.  Lenders don’t risk violations of Sarbanes-Oxley or creating additional lender liability by referring us to our small business clients.  We do have lender support products that are engagements directly with, and for the benefit of the lender.  Compass Business Advisors will not accept any engagements that conflict with the best interests of an existing client.

Q:  How can I best refer Compass Business Advisors to a small business owner?
A:  If you have engaged Compass Business Advisors to perform a Classified Credit Evaluation or FAS 114 compliant Discounted Cash Flow Analysis our experience is that this is a very effective referral method.

For direct referrals, Compass Business Advisors offers to spend one day with the small business owner, at our expense, in order to learn about the business, allow the business owner to evaluate our consultant and to determine the best way to assist the business and structure the engagement.

Q:  Are direct referrals effective?
A:  Sometimes.  Our referring lenders find that our low key, no cost approach puts their customers at ease and allows them to talk more candidly about the problems they are facing.  Some owners engage us immediately after the first day.  Others decide that they don’t need to immediately take the step of engaging us, and that they can successfully address the challenges they are facing by themselves.  Occasionally they’re right; other times, most times, we receive a call several months later from a desperate business owner in trouble and needing help.  At a minimum they know who to call.

Q:  How often do your Corporate Renewal clients achieve financial stability and success?
A:  We’d like to say every time.  What we can say is that we have never had a client fail to achieve financial stability and success unless they “quit” on us and on their business.  More than 80% of small business owners that engage us achieve the financial success they desire and graduate our Corporate Renewal program.  It is a good indication for the future of the small business that the owner has made the call to Compass Business Advisors.

Q: Well, what happens if the client quits on his business?
A: We don’t quit until you do.  We have helped lenders to preserve the capital tied up in non-producing assets through interim management and orderly liquidation plans working with directly with attorneys, trustees and the bankruptcy courts.

Q:  What does Compass Business Advisors know about FAS 114 compliance?
A:  Quite a bit actually.  Our knowledge came from working carefully with the lenders involved with our small business Corporate Renewal clients.  The strategic business plans, proposed debt restructurings and financial forecasts we develop in the normal course of working with our small business clients are a very short step away from providing FAS 114 compliant DCF calculations.  This level of assumption documentation turns out to be exactly what examiners are looking for.

Q:  Why would I send a rejected loan applicant to Compass Business Advisors?
A:  We have found that lenders have very good reasons for turning away loan applicants.  In many cases these are businesses that are candidates for Corporate Renewal assistance.  We’ll help you protect your hard-won revenue streams while we work with the business owner to resolve the loan application problem.  Whatever the problem with the loan application is; when we fix it, your bank could gain a valuable loan customer.