Rising rates

I heard a guy talking on the radio or TV about when his loan interest rate rose to 26%. I remember us negotiating down a businessman's 5 year $1m loan from 24% to 18% using a Loangram. His $100 Loangram saved him $300,000 interest.

Recession

There is talk in Australia of war-caused recession at the same time. Not only does recession destroy profits but it also cuts the value of the mortgaged property making the lender call for more security. When there is not any more to offer the borrower can be sold up.

Act Early

Business debt consultants like us at GBAC see the disaster that can be caused by lenders who refuse to extend loan terms and give a bit of a repayment holiday. Major banks have plenty of reserves to do that, but it is wise for borrowers to not count on that. Talk to the lender before repayment defaults can arise. The smart way is often to get a consultant like myself to talk to the lender. We have a different conversation to the one that most borrowers themselves will be subjected to.