Are your clients growing too fast?
Abstract: In a turbulent economy it’s common for borrowers to stop growing — or start declining. But a lucky few have the opposite problem: They’re growing too fast. And experienced lenders know that unchecked growth can be just as detrimental to debt service as no growth at all. Featured is the tale of a rapid-growth borrower that got into trouble and how that situation was remedied, as well as some perils and warning signals of out-of-control growth. A sidebar discusses how the sustainable growth rate gives borrowers a guideline for reasonable growth expectations.