Can I Modify A Small Balance Commercial Loan?
One common misconception about applying for debt assistance is that a certain amount of debt is necessary in order to be approved for any help
. The fact of the matter is that there is no minimum amount of debt that is necessary for a person to apply for a loan modification. Debt is something that is relative to the borrowers ability to pay it. Borrowers on a low income can have just as much trouble paying a $100 debt as borrowers on a high income can have paying a $1,000,000 debt. The main deciding factor on whether or not a lender will offer assistance in the form of a loan modification is whether or not the borrower has a legitimate need for the assistance. Lenders dot normally modify loans of borrowers who are not facing financial trouble and who have no fear of financial trouble. The loan modification program is designed for those who need it, and there is no specific number for what qualifies as a need.
Bottom line is that any person struggling, or who fears that they will soon struggle to pay their bills on time, should not let anything stand in the way of them asking for help. A small balance commercial loan can be modified just like any large balance loan. The key to being approved for the modification of a small balance commercial loan is to stop wondering whether the assistance will be granted and just do it. Many business owners who have faced financial difficulty in the past and who have been approved for a modification will agree that one of the biggest barriers a person will face as they attempt to climb out of debt is themselves.
Some business owners will simply refuse to apply for a loan modification because they think that their request will be denied anyway, so applying for the modification would be a waste of time. While it is true that not every request is approved, a person who tries to apply for assistance has a much higher chance of success than the person who simply refuses to apply at all.
An important thing to remember about small balance commercial loans is that if they are allowed to default, they can cause just as much damage to a business as any other type of loan. When a loan falls into default, the lender just keeps adding late fees to the loan. As the loan grows through late fees, so will the monthly payments and so will the amount of interest that becomes due. A $100 loan that is ignored and allowed to default and fester has the potential of turning into a loan of thousands of dollars. If the debt is charged off, the business owner hurts their own credit score and the credit score of their company in the process.
If a business owner is worried about whether or not their request for a small balance commercial loan modification will be approved or not, they should contact a local attorney who can offer some assistance in the matter. In this case the word small is just like the word debt, it is relative to the borrower. One persons small balance is another persons large balance.
No debt and no loan balance is ever too small for a loan modification.
by: Timothy McFarlin
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