A Demand Notice: The funniest part of default

For those of you who have been in default, you know well that this situation is highly uncomfortable.  Every business owner wants to be able to pay all of his business debt, and when that becomes unaffordable, the guarantor reluctantly enters into default.

It is not long before the calls from the banker start, you get late notices with accruing fees, and then it comes….. THE DEFAULT NOTICE.

Now don’t get me wrong, this is when the bank becomes aggressive, and a business without a plan who receives one of these notices is in fatal scenario.  If you are one of the clients, you have a plan, we will walk you through the workout process, so you get to look at this notice and laugh.

Lets take a closer look:

-Your business obviously cannot afford the monthly payments, hence you being in default

-You personally have no financial ability to service the loan, and even if you did you would spend your cash on the operations of the business, not past due debt amount.

But still the bank sends you a certified letter stating ‘you haven’t made your payments, so now we want the total amount’. I tend to believe that in the history of banking that these demand notices have never yielded a full pay off.  If the business didn’t have the cash to service payments, what makes the bank believe for one second that the business has the cash available to pay a lump sum of the entire loan amount??

This is just an example of bank procedure.  They couldn’t possibly expect a full pay off from these notices, but they send them anyway.  So if you are our client, you get to put this notice on your refrigerator and laugh every morning.  You are prepared, you have the support of 30 years of experience, you have a strategy, and in the end you and the business will survive… So join us in a laugh over the stupidity of this notice

If you do not have representation, you are not our client, and you find yourself in this position, call us. 413-584-2581 ask for Norm.  We will set you up with a consultation and begin you on the path to peace of mind.