Contacting the lender before a missed instalment gives you a clearer conversation. Explain the shortfall, test a revised payment and check the wider cost.
Corporate Recovery Partners
01 / 06
Monday’s debit will not clear
A transport operator sees that Monday’s loan debit will exceed the available bank balance. A customer payment is late, fuel has already been purchased and the driver payroll is due. The owner considers simply cancelling the debit and hoping to catch up next week.
Confirm the instalment amount, debit date, loan balance and whether the facility is in the business or an individual’s name. Identify any security and guarantee. The consequences of a missed payment depend on the agreement and circumstances. Cancelling a debit changes the collection method; it does not cancel the repayment obligation.
Tell the lender that the scheduled payment may not clear and ask which team handles business repayment difficulty. Explain the cause with evidence rather than a vague assurance that trading is improving. Ask what information it needs and whether a temporary variation can be considered. Do not assume protections or processes applying to consumer loans cover every business facility.
Map actual cash available, likely customer receipts and essential expenses over the next few weeks. Business.gov.au’s cash-flow guidance emphasises knowing the timing of receipts and payments. If a reduced instalment is proposed, calculate the position when normal repayments resume. A brief pause can move the problem rather than solve it.
Ask how a variation would affect interest, fees, the loan term and any amount due at the end. Check whether the lender expects extra security, a fresh guarantee or additional documents. Do not sign a wider personal commitment merely to secure a small delay without understanding it. Have important changes reviewed by the appropriate adviser.
Record the contact, the documents supplied and the lender’s written decision. If there is no agreed change, work on the basis that the existing payment terms remain relevant. A rejection or an enforcement notice needs prompt attention. If several facilities and ordinary bills are also unpaid, obtain a broader solvency review rather than applying for a sequence of emergency loans.
