First, creditors will seek legal channels to recover their debts. For the situation that the small loan company owes money, the creditor can bring a lawsuit to the court through litigation procedures and demand to recover the debt.
Secondly, the court will conduct a trial according to the law and relevant evidence to confirm the fact of default and the repayment obligation of the small loan company. If the creditor can provide sufficient evidence to prove that the small loan company does owe money and fails to repay it within the time limit stipulated in the contract, the court may order the small loan company to repay it.
In addition, if the small loan company refuses to perform the judgment, the creditor can apply for enforcement and recover the arrears through court enforcement measures, such as seizure, seizure and auction of property.
To sum up, generally speaking, small loan companies may face the risk that creditors will sue them for arrears. However, the specific situation depends on the creditor's decision and the court's decision.
Extended data:
Microfinance companies are financial institutions that provide microfinance services and occupy an important position in China's financial system. Different from traditional bank credit, small loan companies pay more attention to supporting individual operators and small and micro enterprises to meet their short-term, small and flexible capital needs.
In terms of business operation, the microfinance company signs a contract with the borrower, stipulating the loan amount, interest rate, repayment period and other related terms. However, due to various reasons, the borrower may not be able to repay the arrears on time. At this time, creditors have the right to take legal measures to pursue their legitimate rights and interests.
It should be noted that the legal procedures are complex, involving creditor's rights protection law, criminal law and other relevant laws and regulations. The specific results of each case will vary according to the case itself, the sufficiency of evidence and the judgment of the court. Therefore, creditors should consult professional lawyers to understand the legal ways to safeguard their rights and interests when they encounter the problem of debt owed by small loan companies.
In short, under normal circumstances, if the small loan company owes money, the creditor can sue through legal procedures to recover the debt. But the specific result depends on the creditors' decision, the court's trial and judgment, and relevant legal provisions.