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What are the consequences of a business loan default?

Defaulting on a business loan comes with many negative ramifications. Here is the list for the same with suggestions to avoid default situations.

HeroFinCorp
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What are the consequences of a business loan default?

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  1. What are the consequences of a business loan default?

  2. Prevalent causes of business loan default 01. 02. 1. Temporary shut down of business due to natural disaster. Revenue loss due to political unrest or riots. 2. 03. 04. 3. Negative impact on business operations due to changes in government policies. Fraud by employees or business partners. 4.

  3. Repercussions of an unsecured business loan default

  4. 01. Poor credit score A loan default lowers your credit score.

  5. 02. Higher interest rate • Your future loans, if approved, will carry a higher interest rate.

  6. Legal complications The lender may take you to court to recoup their losses. You may have to declare yourself bankrupt.

  7. Implications of a secured business loan default The lender may seize the pledged assets. If the loan is secured by a guarantor, the guarantor will be held responsible for repayment.

  8. Tips for avoiding a loan default situation Automate your EMI payments. Transfer your existing debt to a new lender at a lower interest rate. Request that your lender reschedules the repayment terms. Use emergency reserve or windfall gains for repayment.

  9. “Business loan default has many negative consequences, but by following the suggestions above, you can avoid defaulting on your debt.” -Hero FinCorp

  10. Thank You Would Love to hear from you. Hero Fincorp Limited 09, Basant Lok, Vasant Vihar, New Delhi - 110057 Tel : 18001024145 Email : customer.care@herofincorp.com Website : https://www.herofincorp.com/ Know More : What happens when you default on a business loan?

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