Debt solutions narrow with war

Australian farm and business borrowers are stuck between a rock and a hard place by this war.

As pressure and prices rise the options decrease. Cutting costs does not seem feasible. Even interest rate rises are possible. Many family enterprises cannot increase prices without damaging sales volume.

Tight liquidity amongst customers may mean late payments make meeting loan commitments more difficult.

My gut feeling as a business loan consultant and a farm loan consultant is to negotiate with the bank asap. the earlier one negotiates the easier it will be to persuade the bank to provide some repayment lee-way.

Slowing creditor payments

If creditors are consulted and persuaded that regular payments can be made, though for less money. that will ease the pressure too. It is generally a case of moving as soon as it looks like problems may arise.

Most people wait until the last moment and that often does not work.

Communication is the key  to dealing with difficult debt.