Topic: Commercial finance

Adam asked a merchant banker to help him obtain a business loan. After the merchant banker had arranged a loan with an overseas lender and Adam’s business had paid a fee to the lender, it became apparent that the loan was a scam.

Lender overlooked to apply an agreed discount when they redocumented a loan. This affected the amount of interest the borrower would pay.

What happens when a farmer is unable to make the payment on a harvester due to events outside their control?

Commercial lending allows a lender to calculate interest using the rule of 78. The Rule of 78 means the borrower must pay a greater portion of the interest rate in the earlier part of the loan cycle, which means the borrower will pay more than they would with a regular loan.

Is it unfair for a finance company to require a car yard to pay off all its borrowings before it releases its security over any of the vehicles in the yard?

Carol’s business was placed into liquidation and wound up. However, Carol had signed a personal guarantee for a loan to the business to purchase two trucks. The trucks were sold and the finance company pursued Carol for the residual balance. At the same time, Carol had issued proceedings against her ex-partner in the Family Court for the division of their relationship property.

Vijay signed for two loans with a finance company on behalf of his employer’s company and gave personal guarantees. Vijay resigned from the business after not being paid and shortly afterwards the business wound up. The finance company repossessed and sold some of the business’s assets but then contacted Vijay to collect the balance of the debts. Vijay said he couldn’t pay and the finance company said it would have to start debt collection which may result in Vijay losing his house. Is there anything Vijay can do?

Carol’s business was placed into liquidation and wound up. However, Carol had signed a personal guarantee for a loan to the business to purchase two trucks. The trucks were sold and the finance company pursued Carol for the residual balance. At the same time, Carol had issued proceedings against her ex-partner in the Family Court for the division of their relationship property.