A commercial loan default is a serious event for a borrower. It usually signifies that a business is experiencing financial distress. Defaulting on a commercial loan gives the bank the right to accelerate the loan obligations or charge default interest. Both result in costing the borrower more money in a situation where money is already tight. At this point, the bank may request a workout plan that involves restructuring the loan and payment schedule or ceasing a revolving line of credit. Dealing with a loan workout can be costly for a company as resources will be shifted to bank interactions rather than focusing on earning more revenues for the business.
Universal Funding has the experience in dealing with banks and lenders in situations requiring loan workouts. Let us use our time and expertise to resolve those issues for you. The business shifts to a cash flow solution with a factoring company that doesn’t add more debt or require monthly payments and is still able to keep the doors open.
Give us a call today at 800.405.6035 or complete a rate form and a factoring specialist will get in touch with you right away to determine how we can assist you with your needs.