Business was going great, and you needed more equipment to meet demand. You financed that purchase with a loan through CCG. But now business has slowed and you’re struggling to meet your financial obligations. What do you do?
When financial challenges arise, take immediate action and speak with our team. Honest and transparent communication plays a fundamental role in getting you back on track. If you need help, several approaches and steps can move you forward. Unlike conventional banks, we have the flexibility and an adaptive business model that allow us to craft tailored solutions to fit your unique needs.
Before You Seek Solutions: Key Questions to Address
If you start to experience payment difficulties, consider these questions before exploring options:
Is this a short-term or long-term issue?
A short-term issue might involve a brief delay in getting paid, while a long-term issue could mean you’ve lost a significant contract that provided a substantial portion of your revenue.
What other equipment do you have?
Understanding your existing resources helps us evaluate options like refinancing your existing debt or assisting you in selling equipment you don’t need to reduce debt and help manage cash flow.
Do you have other creditors?
If you juggle multiple creditors, this could complicate matters. Consolidating or refinancing your loans might be a practical way to streamline payments and improve your financial position, especially if not all of your creditors have the flexibility to work through your specific issue.
The answers to these questions will help us understand your situation and enable us to evaluate options that will work for you.
Options for Resolving Equipment Loan Payment Difficulties
- Loan Extensions – If you experience a short-term financial gap, extending your loan terms may be a practical solution. This typically results in taking one or two payments and adding them to the back of the loan which alleviates financial stress and provides you the breathing room needed to catch up.
- Refinancing – Refinancing can consolidate multiple debts into a single loan, payoff other creditors, reduce monthly payments, and potentially help improve your credit.
- Debt Restructuring – Restructuring your existing debt can make payments more manageable by aligning them with your revenue cycles or adjusting the terms to match your business’s needs.
- Downsizing your operation – If downsizing is the right path, our team can assist in selling equipment to manage your debt. We have a network of customers across the country who may be looking for the type of equipment you need to sell. Unlike traditional dealers or auctions, we don’t take commissions, so you’re likely to get a better price.
- Cutting Expenses – Sometimes, overhead reduction is necessary. We can put our industry knowledge to work and help analyze your expenses to identify areas where cuts could be made without sacrificing business efficiency.
A Commercial Credit Group Customer Story: Tailored Loan Restructuring for a Transportation Client
Challenge: A transportation company had eight outstanding loans. The owner secured a 4-year contract, offering a steady stream of work and revenue. Despite the new contract, there was a mismatch between the timing of loan payments and the company’s invoicing schedule, which led to cash flow issues, and made it difficult to make payments on time.
Solution: To address this, CCG customizes a bi-weekly payment plan that aligned with the company’s invoicing schedule. Additionally, payments from the company's new contract were directed straight to CCG, ensuring prompt and regular payments.
Outcome: With this new structure in place, the customer caught up on delinquent payments and kept them current on their obligations. This tailored approach allowed the client to focus on growing his business without the constant stress of cash flow issues.
What to Embrace and Avoid During Financial Hardship
DON’T dodge collections.
Do not avoid calls or texts from customer service representatives. That only makes matters worse. Molly McCallum, Customer Relations Specialist at Commercial Credit Group, emphasizes: “Communication is key. Contact your Customer Service Representative as soon as possible if things are changing with your business and payments are becoming an issue. Let us know what is going on so we can find a solution before you miss a payment.”
DO build a relationship with your lender.
Maintain open lines of communication and help your lender work with you to find a resolution that works for both parties.
DON’T take on more debt without careful consideration
Unsolicited offers for “fast cash”, while tempting, can be detrimental to your overall credit position. For example, high-interest loans like Merchant Cash Advances (MCA) can worsen your financial situation because the repayment structures are aggressive and the costs are high.
DO seek professional advice.
Consult with business advisors to provide insights and strategies to improve your financial health. A fresh perspective may reveal solutions you haven’t considered before.
If you're struggling with equipment loan payments, act before the situation escalates. Our team can help with solutions like debt restructuring, refinancing, selling equipment, and more. We’re committed to finding the right approach based on your situation and offer guidance and support every step of the way. Don’t hesitate—reach out today, and we’ll work together to get your business back on track.
