A doubtful loan is a classified credit where full collection or liquidation is highly questionable and improbable, given current conditions. It sits below substandard and above loss in the regulatory scale — a likely partial loss, with the amount not yet certain.
A doubtful classification signals a probable loss and heavy reserves, and draws close examiner attention â strong reasons to resolve the credit, including by selling it for certain cash now.
Doubtful means full collection is highly questionable but a loss amount is not yet certain; loss means the credit is considered uncollectible and warrants charge-off.
Yes â priced to its collateral and recovery path; selling converts an uncertain recovery into certain cash.
Standing Bid Capital, directly and all-cash, $250Kâ$25M.