An interest freeze is a proposal for a creditor to consider. Define the charges, period and conditions so an apparent concession does not leave the debt growing elsewhere.
Corporate Recovery Partners
01 / 06
The instalments barely touch the balance
A printing business offers regular instalments on an overdue supplier account. The owner asks for interest to stop, but the reply simply says the supplier will consider helping. Accounts starts forecasting a fixed balance. Before relying on that result, the business needs a clear answer about what would actually be waived or suspended.
Separate principal, interest, late fees and collection charges. Ask for a calculation and the contractual basis where unclear. Keep genuine disputes distinct from a request for a commercial concession.
A request to freeze future interest does not necessarily address charges already accrued. Put both questions in the proposal so the expected starting balance can be checked.
State the proposed start date, review period and repayment schedule. Ask whether interest stops permanently, pauses temporarily or may be reinstated after default. These are terms to negotiate, not assumed rights.
Confirm whether fees continue and how payments will be allocated. A lower interest cost may help, but the business still needs to understand the amount remaining after each payment.
Prepare a realistic cash forecast supporting the instalments and ordinary operating bills. Business.gov.au recommends tracking the timing of incoming and outgoing money. Use collection evidence rather than a general assurance that trade is improving.
Explain the benefit of the proposal without promising a result you cannot control. If one delayed receipt breaks the schedule, adjust the offer before seeking acceptance.
Have the final terms checked where the debt or consequences are significant. Keep the accepted version with the account and tell the bookkeeper exactly what was agreed. Silence or sympathetic language is not a confirmed freeze.
Monitor the next statement against the agreement and query differences promptly. If the creditor refuses, revisit affordability and advice options instead of removing interest from the forecast anyway.
