Is your business still viable?
Can your business recover?
You may need to work out whether your business is still viable. You can do this by:
Talking to your accountant
High cost business loans
It can be tempting to seek funds from lenders who promise to provide money quickly when your income has dropped substantially or you temporarily have no income. However, things can go horribly wrong very quickly.
Small business lenders are not regulated, which means they are not required to work out whether you can afford to repay the loan.
Often the interest rate is not clear at all. You could end up paying interest rates of more than 50 per cent calculated daily as well as high establishment fees and penalties. There have been reports of penalty interest rates being as high as 150 per cent.
The lender may not be a member of the Australian Financial Complaints Authority (AFCA). If they are not a member, your only option is going to court to resolve a dispute. We recommend you only deal with lenders that are members of AFCA.
Please call us on 1800 413 828 to speak to a small business financial counsellor.
Warning: This is for information only. Do not rely on it as legal advice. It is recommended that you seek specific advice on your own situation.