What to do if you can’t pay your loan in time

With the prevailing economic crunches due to the novel Coronavirus, chances are that you are cash strapped. Your business is bleeding, if not in a coma already, there’s minimal cash flow, no supplies coming through and if you took a loan for the business, you aren’t seeing yourself keeping your word to the lender.

If you fail to make on-time payments, your loan goes into default. Loan defaults lead to poor credit ratings (credit score). Missing further payments may lead to incurring other penalties and incurring interests. Legal action may follow if the situation is not adequately addressed. Other lenders, depending on the type of loan, will move to repossess your goods, stock or assets.