We know that individuals who apply for loans from banks and other financial institutions, but fail to repay them on time, have serious consequences, which will not only affect their own credit, but also affect their future applications again. As an enterprise, if the loan cannot be repaid on time, it will also have a serious impact on the credit of the enterprise. Let's take a closer look:

What will happen to corporate loans?

1. Upon receipt, the fund provider shall make compulsory repayment according to law.

If the enterprise's loan cannot be repaid, first of all, financial institutions such as banks that provide funds will collect the overdue payment according to law, and they have the right to collect it according to the contents of the contract. Then relevant measures will be taken to freeze the deposit in the borrower's bank account, and if it is a mortgage loan, the pledged property will be seized. After that, it will be enforced according to law, including auction of pledges and deduction of deposits.

2. In addition to the seizure and auction of property, credit will also be affected. The company is the borrower of the company loan, so if the company can't repay the money, it will be recorded in the national bank credit information system. If the bank does not erase this record, it will be impossible to apply for a loan from the bank in the future.

What if I can't pay it back?

First, take the initiative to negotiate with the bank.

If the enterprise really encounters a shortage of funds and can't afford the loan, it will definitely be blacklisted, which will have a very bad impact on the enterprise. At this time, the first thing to think of is to communicate and negotiate with the institutions that provide loans to us in a timely and proactive manner. Perhaps the lender will propose measures such as extending the term or appropriately reducing the amount payable in each installment and increasing the number of repayment installments. In short, you must remember to negotiate with the lending institution first.

Secondly, you can choose to apply for a temporary loan from the company.

At present, the first thing that corporate loans think of is to apply for loans from banks. In fact, in order to increase business, many companies will also launch their own loan products, even temporary loans for companies and individuals. These loans are short-term and the application requirements are relatively low, usually to solve the urgent needs of enterprises in urgent need of funds. So choosing the products of these companies is also a solution.

In short, if corporate loans cannot be repaid, you must not choose to escape. Be sure to communicate with the fund provider in time or think of other ways, otherwise it will bring serious consequences to the enterprise.

What if the company owes a loan to the bank?

Institutions that owe bank loans but are unable to repay them will take a series of measures, as follows:

1. The bank will call the borrower to collect debts.

2. If the borrower still fails to repay the debt after debt collection, there will be a certain penalty interest and a bad credit record for himself.

3. If the borrower still fails to repay the loan, the bank will send relevant staff to collect it in person.

4. If the borrower fails to repay the loan until the end, the bank will take legal measures to safeguard its own rights and interests. If the borrower applies for a mortgage loan, the collateral will be auctioned, and then the proceeds from the auction will be used to repay the loan.

Extended data:

overdue loans

According to the relevant provisions of the Contract Law, the borrower fails to repay the loan within the time limit stipulated in the loan contract, which is a breach of contract and should bear the liability for breach of contract. The ways to bear the liability for breach of contract include returning the loan principal, paying the interest during the loan period agreed in the contract and paying the interest of loans overdue.

Repaying the loan principal and paying interest within the loan period agreed in the contract will generally not cause disputes because the parties have clearly agreed in the loan contract; There is a great dispute between the parties about the interest on overdue loans, and the standards applied by judges in hearing such cases are not uniform, which affects the authority of the law. Lawyers believe that it is necessary to integrate this issue so that everyone's understanding can be unified.

The funds invested by banks in such loans may or may not be recovered in the future. There is a great possibility of losses, and commercial banks usually have to impose a penalty interest on such loans. Overdue loans are the problem assets of banks. Commercial banks should maintain a high capital reserve, and the reserve ratio is generally 50%.