Yes, loan defaults do happen. They are an unfortunate reality in managing a business. As an entrepreneur or corporate executive you must be alert to signs of financial stress in the business so as to take proactive action.
When you find yourself defaulting on your financial obligations - whether to your bankers or suppliers - it is important not to panic. It pays to take a deep breathe and think through an appropriate response. I have seen a simple, temporary business hiccup degenerate into crisis because of panic and mismanagement.
You need to think and act in a way that safeguards your credit standing and reputation in the market place - even in the face of possible threats and provocative actions by your creditors.
In many cases it is better to involve an external professional who can bring a fresh perspective to things, particularly if the creditor has involved a tough-talking internal collections team or engaged the services of an external loan recovery agent.
Our loan restructuring and advisory team can help by conducting a FREE initial assessment that provides an understanding of the true situation, whilst providing insight into opportunities to settle amicable and safeguard the relationship.
What do you get at the end of the day?
We will send you a brief, easy-to-digest opinion on:
- The fundamental viability of your business - an indication as to whether you are dealing with a temporary liquidity mismatch or a deeper problem
- Some recommendations of the best loan workout or modification options - restructuring, refinancing, consolidation, etc.
- A strategic action plan to reposition your business for improved money management and financial flexibility
When defaults result in litigation, hard-won relationships are destroyed and there is a reputation risk to the business. When businesses go into receivership dreams are shattered, jobs are lost and the economy suffers. If there is a way to turn that bad situation around, our financial advisory team will find it.
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