Pay-off on business bank loan

JMH204

Hello - We lost our business some three years ago and still owe the bank a lot of money. I have heard that banks sometimes accept a "pay-off" amount considerably less that the loan. Does anyone know the procedure for this.
Thank you. JMH400

jonesMUFCforever

Depends on whether the lending was secured or not. If it was secured there may come a time when they might realise their security to get their money back.
If it is not they might accept a lower amount to get rid of the problem. They might want to know however how you can afford to pay so much but not the whole amount.
You don't get if you don't ask.
Eric

JMH204

Thank you Eric. I really appreciate your help. I will ask.
JMH204

VixxAnn

I think its worth approaching them to get a pay-off figure - or at the very least, ask them if they will freeze the interest. It may sound like an over the top question but its been done before and I know some banks will be quite understandable (although utter pigs at the same time!!)


Good luck;) I know you'll feel better when you are finally free of them.

alpen_2

It is always worth contacting to negotiate a settlement figure. Try offering a low percentage, say 10%, and see what the reaction is. If they laugh at you, go away and return in a few weeks and increase the offer to, say, 12.5%. Always make your increase small, let them give the large reductions. If they ask where the funds are coming from, be vague and imply it's from family.