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The recent recession has negatively affected a lot of businesses that many commercial property owners are having difficulty in paying their loan. It is a good thing that commercial loan workouts can help these delinquent borrowers. Many banks and other lenders are now offering a commercial loan workout to help borrowers get back on track. Commercial loan workouts are a type of arrangement between the lenders and commercial borrowers to help these borrowers avoid going into foreclosure or bankruptcy. A loan workout could include lowering the interest rate, decreasing the principal balance, or extending the maturity date of the loan. There are many factors to be considered by lenders before offering such a commercial loan workout. The most critical factors are the actual occurrence of a financial hardship and the capability of the borrower to repay the loan. A commercial loan workout is used only to modify the terms of an existing loan, not to provide cash or to refinance commercial loans.