Receiverships and foreclosure can involve small business owners in very large fees . Then they are often locked out from their premises. Forced sale of the family business often involves sale of stock, plant and equipment, furniture and fittings built up over decades, all sold at “fire sale” prices.
Then what do you do? No business. No income. No money. Find somewhere to live. Look around for a job. That may not be so easy at your time of life.
If you have children there are the really difficult explanations as to why they may have to leave their home and perhaps their school. It is hard facing the family and the neighbours as you move out of the family home given as security for the business loan.
If your business is surviving in Covid with government support, now is the time to fix potential bank loan problems, before that government support disappears. The GBAC banking consultancy offers family business owners a facility to contact a number of major banks for offers of finance. They will want your “new” business. Then you can share those bank offers with your existing bank that knows you warts and all and believes you will stay with it forever no matter how it treats you. A banker once told Greg Bloomfield in his Chartered Accountancy days, “Your bank only respects you when there is competition for your business”.
By comparing loan offers, you can lock in the most appropriate long term finance with ability to pay out early if you wish. GBAC can organise that, including a first class Business Loan Presentation, to show all banks your future potential and current good management. GBAC works for you, not the banks.
Yours does not have to be one of the life-destroying SME bank foreclosures forecast for 2021.
Turn your potential debt disaster into triumph instead of letting the bank enrich itself by seizing everything you have if your cashflows fall as government support diminishes. Click here for a free chat. There is no downside.