When a bank line may be exiting: a 90 day planning framework

The first planning phase can focus on the current operating picture: a short-term cash-flow view, current financial statements, receivables and payables agings where material, inventory detail where relevant, debt schedule, lien information, payoff requirements, and a concise explanation of the business's current position.

For a potential asset based facility, eligible collateral, borrowing-base reporting, appraisals, field examinations, reserves, and existing liens can be material. The OCC's guidance shows why receivables and inventory must be reviewed through the lender's eligibility and monitoring criteria, not just their face value.

A business can use the organized facts to decide which lender discussions are worth pursuing. The request should identify the amount, use of funds, collateral, existing obligations, repayment case, and the information available for diligence. Controlled outreach and clear authority to share documents are important because financing materials can be sensitive.

No lender's interest, term-sheet timing, pricing, or final structure should be assumed. Lenders set their own underwriting, collateral, documentation, and credit requirements. A transition plan is valuable because it reduces avoidable uncertainty, not because it creates an automatic replacement facility.

If a lender proceeds, diligence can involve collateral review, field examination, appraisal, legal documentation, payoff figures, consents, lien priorities, releases, account control, and other closing conditions. Each step can require information from the borrower, current lender, landlord, customer, vendor, counsel, or another third party.

This final phase is not a closing promise. It is a reminder to keep the parties, documents, and dates visible. The business should avoid treating future tax credits, training reimbursements, exemptions, or other potential incentives as immediate transition liquidity unless the relevant benefit is already established and its timing is understood.

The three phases are not a legal timeline or a standard market process. They are a coordination tool for separating urgent facts from later diligence. Some situations may move faster, while others can require more time because the lender, borrower, counsel, collateral, payoff, or third parties have unresolved requirements.

Authority and confidentiality need attention from the start. The business should decide who can speak with the current lender, who can provide financial information to a prospective lender, whether a broker or adviser has authority to submit materials, and how duplicate submissions will be avoided. Those decisions help protect sensitive information and preserve a clear record of communications.

New debt should be evaluated carefully while an existing line is under stress. Cash-advance products, equipment arrangements, receivables facilities, landlord agreements, or other obligations can affect liens, payment priority, cash flow, and the information a prospective lender will need. The relevant agreements and qualified advisers should guide the decision.

An updated cash-flow view can keep the team focused on the actual runway. It should identify expected receipts, payroll, critical vendors, debt service, tax obligations, and any lender-controlled cash mechanics. The forecast is a management tool, not a representation that a refinancing or extension will occur.

When another lender is approached, the request should state the current position accurately. A prospective provider may need to understand the existing facility, maturity, lien structure, payoff mechanics, and the borrower’s communication authority before it can decide whether a discussion is appropriate. Omitting those facts can create later diligence issues even if the initial operating results are strong.

The business can also maintain a decision log for material dates, submitted materials, lender questions, adviser responsibilities, and required approvals. That log is not a substitute for counsel or the signed documents. It is an operating tool that helps management coordinate multiple workstreams during a period when timing and communication can be important.