This is something we get asked, sadly more frequently than we would like.
Most business owners think this is a bad thing to ask, or feel they shouldn’t be in this position, however we see it very differently.
Asking about making your loan repayments is one of the best things you can do, it means you are already looking at the problem and searching for a solution.
The worst scenario is the Ostrich, burying your head in the sand simply doesn’t work, especially when lenders start to lose patience.
What Can Lime Consultancy Do?
We will work with you to address the issues in your business that have brought you to this point. We never judge, never criticise, and always take a realistic viewpoint.
You would be surprised how much can be achieved by letting an external party look at your business, the objectivity and impartiality are REALLY beneficial.
What Will The Bank Think / Do?
This is a question we get asked frequently.
So, let us provide an insight on how a bank manager’s mind will work –
- Investigate the new situation and gather as much information as possible
- Assess the situation, is more information required?
- Is the security position satisfactory? Is more security available and does the interest cost or charges need to increase
- Discuss the position in detail with the borrower
- Formulate clear, short term objectives. Ask whether full repayment is impossible without taking on further risk, then accept the best result which is possible
- Get control of the situation, follow any action plan and do not make empty threats, follow up any actions firmly
This type of thought process is in the lenders favour.
Your risk, is in not being prepared for this type of thought process and not having the answers or proposals to hand that could provide the best result for you.
We will take you through this process, review it with you, and get you properly prepared. Asking a bank to consolidate your loans, postpone repayments, reduce charges etc, is not in their favour without you giving something more in return.
So don’t ask unless you are prepared.
You can achieve what you want, and alleviate your worries over your business loan repayments. However, get our input and guidance as early as possible.
Please add your comments below, contact us via the website or call us on 01293 541333 and we will gladly chat things through.
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