Survey predicts lenders will stop ‘kicking the can’ on loans

Carl Marks Advisors, the financial advisory group, believes companies will have to soon make changes to their loans.

During the pandemic, banks and alternative lenders have had a “kick the can” flexibility for mid-market companies looking to borrow, according to investment bank advisory group Carl Marks Advisors. But they are predicting that will soon change.

A survey conducted by the firm predicts that lenders will begin to act on loans made to underperforming companies regardless of the companies’ revenue struggles or even if there is a risk of default.