Quick answer
If you have missed payments on a business loan, contact your lender early, find out exactly what is owed and what notices have been issued, and consider refinancing before the situation escalates. Alternative lenders, especially property-secured ones, can refinance loans in arrears when there is equity and a credible plan, and can often move faster than enforcement.
Key points
- Contact your lender before it escalates
- Get the arrears and payout figures in writing
- Property-secured refinancing can move faster than enforcement
- A credible plan matters more than past missed payments
Early action changes the outcome
Missed payments usually start for an understandable reason: a quiet month, a customer paying late, an unexpected tax bill. The danger is the drift. Fees and default interest build, notices arrive, and the lender’s attitude hardens. Owners who engage early, with a plan, have far more options than those who wait for the next letter.
What to do this week
- Call the lender. Explain what happened and ask what can be arranged.
- Get figures in writing: arrears, fees, current balance and payout amount.
- Read any notices carefully and note the deadlines.
- Work out the cash flow with the cash flow gap calculator so you know what you can genuinely afford.
- Get advice from your accountant or a solicitor if formal notices have been issued.
Refinancing out of trouble
| Situation | Refinance route |
|---|---|
| Unsecured loan in arrears, healthy deposits | Refinance onto a longer unsecured term |
| Several loans in arrears | Debt consolidation |
| Bank loan in arrears with property | Private first mortgage refinance |
| Loan expired, lender wants repayment | Bridge with a private loan until a long-term refinance |
Property-secured refinances run starting at $20,000 and reaching $5,000,000, and no valuation is required up front. You can prepay interest or add it to the balance, which gives a business in arrears time to stabilise. Funding can happen in as little as 24 hours on straightforward deals once documents are signed.
What a refinancing lender wants to see
Why the arrears happened, what has changed, and how the new loan solves the problem rather than delaying it. A refinance that simply resets the clock on an unworkable situation is hard to approve. One that consolidates debts, lowers repayments and leaves a buffer is attractive.
An illustrative example
An electrical contractor fell behind on an equipment loan and a business overdraft after a builder client collapsed owing a large sum. Default notices had arrived. The owners had equity in their home. A private second mortgage cleared the arrears on both facilities and provided working capital while they pursued the builder’s liquidator. With repayments current, the business kept its equipment and its credit file did not deteriorate further.
Act before the next notice
Use the 60-second form and tell us what is owed and what notices you have received. No credit check applies at this point, an expert looks it over, and your details stay private. Get options for loan arrears.
Frequently asked questions
What happens if I keep missing payments?
The lender may issue default notices, charge default interest and fees, list a default on your credit file and take enforcement action under the loan contract.
Can I refinance a loan that is in default?
Often, yes, with property security and a realistic plan. The sooner you start, the more options you have.
Will the lender negotiate?
Many will consider a temporary arrangement if you engage early and honestly. Ignoring calls tends to narrow your options.
Should I get legal advice?
If you have received formal default or demand notices, yes. A solicitor can explain your rights and the timeframes.
Prefer to start now? Enquire here
About 60 seconds. No credit check when you first enquire, and a person who handles unusual deals calls you back.