I have a small business on which I have a SBA loan thru a small local bank. I am currently 4 month behind on payments. Now - all of the sudden a week before the end of the year the banker wants me to catch up on all payments. Why is it to his advantage for me to be caught up with them by the end of the year?
2006-12-28 06:10:52 · 3 answers · asked by Ralph 7 in Business & Finance ➔ Credit
Because if he is a loan officer he probably bonuses on the percentage of loans that are current and not in default.
2006-12-28 06:22:50 · answer #1 · answered by Gem 7 · 1⤊ 0⤋
Because you signed the almighty contract, within this contract (in small print mind you) if any default by you they could foreclose at anytime. You are lucky that they aren't demanding all of the money you borrowed. You better pay or they will repossess whatever you bought or used for collateral.
2006-12-28 14:42:47 · answer #2 · answered by Anonymous · 0⤊ 1⤋
It helps with their books, yes.
2006-12-28 14:18:39 · answer #3 · answered by my brain hurts 5 · 1⤊ 0⤋