What happens if a business can’t repay their loan?
Our experienced client representatives will work proactively with the business to find a positive solution. We highly recommend the business give us a call immediately after any changes in the business that would impact their financial situation, allowing us to work towards a solution. This may involve an amendment to the contract or developing alternate options.
If a business defaults on the loan, Banjo has many rights and you should refer to the loan and, if applicable, any security agreements for more detail. Generally, a business will be charged default interest on any overdue amount and fees in relation to any rejected payments. Banjo may also apply an additional risk margin in respect of future payments or have the remaining scheduled repayments re-rated. If the default is serious Banjo may demand repayment of the loan and may take action to recover the funds(including referring the debt to a third party debt collection agency for recovery action) and we may elect to report defaults to credit reporting agencies.