Talking Finance: It pays to know if your write-down is worth it

Free money is always worth looking into, but the ‘time value of money’ must be taken into consideration first

5th February, 2017

One of the most frustrating things I come across as a financial adviser is watching a bank refuse to write down a loan and then selling that same loan, usually making a loss. The frustrating bit is what comes next.

The bank absorbs the loss. Then a distressed debt buyer (sometimes referred to as ‘vulture’) comes along, buys the loan and offers the borrower a write-down.

Most of the banks realising these losses...

Subscribe from just €1 for the first month!

Currency

What's Included

With any subscription you will have access to

  • 971569B3-2C5E-4C45-B798-CEADE16987A8

    Unlimited multi-device access to our iPad, iPhone and Android Apps

  • 099C8662-C57C-42F2-9426-F2F90DF17C8F

    Unlimited access to our eReader library

  • 198AE43B-B9CF-4892-8769-D63C2104BA08

    Exclusive daily insight and opinion seven days a week

  • D8F37B78-25E4-4E4A-A376-4F5789B1564A

    Create alerts to never miss a subject that matters to you

  • B15F2521-37CD-4E02-B898-730A20D39F7F

    Get access to exclusive offers for subscribers on gifts and experiences

  • A564FE02-1AB8-4579-AF9D-BA32A2E5ACA7

    Get content from Business Post, Business Post Magazines, Connected, Tatler and Food & Wine

Share this post

Related Stories

Private rental sector remains strong despite Covid-19

Insight Tina-Marie O'Neill 10 months ago

How the programme for government will shape housing

Insight Niall Byrne 10 months ago

Comment: US must defuse Covid-19’s ticking time bomb of debt

Insight Todd G Buchholz 11 months ago

Comment: The recovery will be more U than V-shaped

Insight Larry Hatheway 11 months ago