Loan advice

mardatha

My son is asking for advice re a loan. It's a business loan, taken over 10 years, and he's halfway through it. The loan is with RBS, so is his mortgage, so is his overdraft. He wants to know if he could get the loan payments reduced as he has no work and is struggling. If he approaches them will that not just alert them to the fact that there is a problem? Is it wise ?

Apples2

Unlikely they will do anything. Not like payday loans who try to grab the lot quick.

Mainstream lenders normally expect the payments to default before entering into discussion

Tixy

Does he trade as a sole trader or via a limited company? If its a limited company does the loan have a PG against it?

Certainly reasonable to approach them and discuss if he can change his business repayment plan - they are likely to want to see a revised cashflow projection to see whether he can trade out of the current situation.

mardatha

He's a sole trader, a joiner. TY for help, it's very worrying. He has no work at all, has had one day's work in months. He doesn't really know how to get out of this.

Anthony_Fritts

This is the tough time for your son and I hope he will get out of this time very soon. Would u like to share what kind of trading your son used to do?

worried48

I would suggest he needs either to advertise (obviously in cheap places - cards in shops etc) and be prepared to take small jobs, or to reduce his rates. In my experience it is very difficult to find people to do small jobs and there has to be a market out there for that sort of thing.

sistafromanothermista

What part of the uk is he in?

Bravehearted_2

Can he diversify his services? I find tradesmen can be versatile in many things?

mardatha

He's in Edinburgh. I think he's spent the last 3 months trying everything he can think of, but he's had only one job in that time and now it's the money side he needs to sort out.
I'm worried that it just alerts the bank to a problem and makes things worse if he contacts them?

liulugoommohome

Thank you for your message. I learn a lot.Hope to see more posts.