Welcome to BACRS!

Innovation.  From JM Arysson.

Simple solutions.  Everyone loves them.  Make them too simple, however, and they become less “solution”, and more, well, simplistic.  The “one size fits all” approach to your financial concerns usually lacks the flexibility you need to protect and advance the interests of everyone depending on you to succeed.

The challenge is to keep the right solution as simple as possible.  Identify what is needed.  Then make it easy to use.  Include more choices.  Deliver more value.  Foster the users’ creativity.  It must work everywhere.  On demand.  

Done.  Welcome to BACRS.

BACRS.  Simple.

BACRS, Borrower’s Advanced Collateral & Recovery Solutions, was founded to help lenders and loan investors surmount the challenges to grow, control their credit and compliance risks, and protect their capital.  With more than 150 years of cumulative senior experience on our team in banking, accounting, tax, insurance, investments, corporate finance, and risk management, we have intimate, first-hand experience of what is required. 

The simple solution is capital.  Capital is always the solution.  Or, rather, it is the general solution. 

BACRS helps you develop the right capital solution.  The amount you need.  When you need it.  At the price you select.  Maximum flexibility.

BACRS structures capital just right.  Just for you.  Simple.

BACRS.  Capital.  Breathe.

What’s important about capital?  As a finance professional, you know.  

Capital is oxygen.  At all times.  In all places.  In all circumstances.  Think scuba diving.

If you are a scuba diver, your oxygen is limited and always at greater risk than were you to simply stroll on the beach.  You need a backup oxygen source.  With low-risk availability.  Now. 

If you manage capital at risk, you need a backup capital source.  With low-risk availability.  Now. 

The more capital you have, the better you protect and sustain the life of your institution, and the stronger financial partner you are to your customers and communities. 

BACRS capital is your oxygen.  Breathe.

BACRS.  Use it.

BACRS capital may be used for nearly any risk management purpose.  Use it as a first-loss buffer.  Use it as an additional source of cash for repayment or recovery.  Use it as cash collateral to reduce your capital requirement dollar-for-dollar for any loan or lease assets you select.  Use it to comply with reserve requirements.  Use it to compete for new borrowers. 

Use it.

BACRS.  No gambles.

When you develop BACRS capital, it does not expire or disappear.  Unapplied BACRS capital may be perpetually re-applied.  It can accumulate over time.  Or returned to you.  You choose.

BACRS capital does not involve swap-type payments.  If you are in a swap, you know your payments are not returned at the end of a swap agreement.  Circumstances that can move a swap in your favor are almost always beyond your control.  They may depend on narrowly-defined events that have a low probability of happening. 

BACRS capital is not a hedging instrument.  Such products include expiration dates.  As with swaps, conditions moving hedge positions in your favor are beyond your control.  At the expiration date, your hedge instruments are mere expenses if they cannot be exercised. 

Swaps and hedges are probability-based.  Gambles.  Not simple.

Swaps and hedges expire.  Their cash flows disappear.  There are no enduring capital benefits.

Swaps and hedges require complex and expensive accounting treatment.  BACRS does not. 

BACRS capital is managed capital.  No gambles.

BACRS.  No counterparty risk.  Zero.

Let’s assume you are able to execute your right to receive cash flows  under a swap or hedge.  If you are executing on your instrument, how many others are also executing at the same time?  Does your counterparty have the liquidity to send your cash flows to you?  Will your counterparty be able to make good on their obligations?  Will they even be around? 

BACRS capital carries no counterparty risk.  Zero.

BACRS.  No incremental technology risk.  Zero.

BACRS does not require you to transfer data or use processes requiring internet transmissions.  Your data remains private, unexposed to prying eyes, subject only to your existing technology risks.  Same with your relationship information.  BACRS does not require any investment in new technology infrastructure.  No new hardware.  No new software. 

BACRS capital carries no incremental technology risk.  Zero.

BACRS capital requires no incremental technology expense.  Zero.

BACRS.  Private.

BACRS maintains a completely private relationship with you.  No one needs to know you receive BACRS services except you, BACRS, and your regulators.  Private.  

BACRS.  Access your capital.  Retain all collateral and security rights.  Assured.

Housed in your institution, BACRS capital is available when you choose.  When you make the decision that any loan or lease asset no longer complies with your credit policy, execute your access.  Simple.

Example:  Your credit policy requires cash flow coverage of debt service of at least 110% for C&I loans.  A borrower’s cash flow falls below this threshold with little hope for timely replenishment.  With BACRS, you will execute up to four repayments or recoveries of your exposure totaling up to 59% of the outstanding asset’s notional amount. 

Execute your BACRS repayments or recoveries when it suits you best.  Before the borrower defaults.  With complete and sole retention of all original collateral and security rights.  Assured.

BACRS.  Cost = $0.

BACRS services are intended and designed to be free to lenders.  Lender cost = $0.

BACRS.  New choices.  Be creative.

BACRS is unique in today’s lending environment.  Our innovative approach gives you improved control over the consequences of credit risk in any portfolio.  With BACRS, you will:

  • Create and execute your own new strategies as borrowers weaken or approach distress.
  • Reduce the risk of lending to any borrower.
  • Develop new strategies for profitability.
  • Institute new long- and short-term capital management plans.
  • Reduce your costs of compliance.
  • Avoid additional or complex accounting requirements.
  • Maximize the value of your bank.
  • Challenge your institutional talent with new choices. Be creative!

BACRS capital is your oxygen.  Breathe.

We invite you and your team to learn more about BACRS and consider how we may serve you.  To familiarize you with BACRS proprietary concepts and services, we’ll begin a confidential dialogue that includes a no-risk simulation of the BACRS process.