Questions

I inherited a forty-year-old business entity involved in customs consultancy and brokerage from my father about three years ago, along with a $250,000 business loan. I took an additional loan of $300,000, and for the past four years, I have been paying approximately 15% interest rate per annum. However, this ongoing pandemic has hit me very hard, and I am unable to keep paying back the EMI (Easy Monthly Installments). I am thinking of liquidating some of my assets to get out. What other alternative routes can I take to keep my business afloat that also leads to me becoming debt-free while holding on to my assets in a densely populated country where investment in assets is always lucrative.

Frankly, the answers you received show no understanding of your problem. They are fine for consumer debt, but your issue is business debt.
I don't know where you are that a 15% interest rate is reasonable for this situation...but let's assume it is.
You have a few possible solutions:
First, find a partner who believes in you and your business and can invest through equity rather than debt. This will reduce your monthly costs
Secondly, approach your lender(s) to renegotiate a longer term loan with lower payments. I don't know what your security was against the loans, but if it was the business assets the lenders would prefer repayment rather than taking over your business and maybe getting pennies on their debt.
Reduce the loans through assets sales, as you have suggested.
Whatever path you take, get a good advisor to work with you, as you might be blinded by bring in the business. They can bring an outsider's eye to your problem.
Good luck in your future!


Answered 3 months ago

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