Some days ago, I wrote a blog post about what business owners need to know before applying for a business loan. Since the article was well received by the Steemit community, to the extent that it was upvoted by the 
Today, I will be discussing what you need to do in the event that your business loan goes bad for reasons beyond your control. Yes, I know that you're a prudent business owner and that you have probably done your homework before applying for a business loan.
Nevertheless, working as a credit analyst I have seen many loans go bad for good and bad reasons. The worst part of it is that the business owners usually handle the issue the wrong way.
I still remember vividly the case of one Mr. Nik (not his real name) who got a loan from my company and disappeared into the thin air when he was unable to pay. And because Nik did not do what the bank had expected from him in that circumstance, the bank had no choice but to confiscate his assets as stated in the loan contract.
The reader should not be like Nik. Here are some of the things you need to do when your business loan goes bad.
1. Contact Your Account Officer
If for whatever reason you're unable to meet up with your loan repayment, it is advisable that you first contact your account officer. Explain why you're unable to make payments and probably tell him when you can possibly make the payment.
If your request cannot be granted or handled by your account officer, then you should directly contact the bank. This takes us to the next step.
2. Contact Your Bank
When contacting your bank, let the bank know your plight. Explain to the bank authorities why exactly you're unable to make your repayments. You could ask for a grace period or a rescheduling of your loan plan.
The grace period, if granted, usually extends the repayment deadline to fit into when you'll be buoyant enough to resume payment.
Unlike grace period, restructuring your loan will mean that part of the loan contract will be altered to ensure that your repayment is completely restructured to fit into your present financial realities. For example, your repayment could be restructured from $1000 per month to $500 per month or less.
It is necessary to mention that banks generally do not like to restructure loans except that there are reasonable grounds to do that.
Lastly, if your loan reschedule request is granted then you could also ask for a penalty waiver to ensure that your debt does not compound unnecessary. Don't forget that the bank only likes you because of the interest you pay on your loan.
3. Liquidate Your Assets To Stay Out of Trouble, If Necessary
If you honestly know that it is not possible for you to repay your loan due to bankruptcy, it is better that you liquidate your asset to save you from the embarrassment of allowing the bank to do so.
At least, it is better that you sell your expensive artwork or jewelries at reasonable prices and offset your debt than to have the bank confiscate your house and send you to the streets.
4. Seek Legal Advice
The best time to go over your loan contract again is when you're in overdue. And the best person to help you understand the jargons in there is your lawyer.
Going through the loan contract may help reveal some loopholes which your lawyer could exploit to your advantage. For instance, you could discover that some bad loans are covered by insurance under certain circumstances such as fire outbreak, flooding, burglary, hurricane, etc.
In conclusion, having a bad loan is not as bad as you think. Instead of avoiding the bank or fleeing when your loan goes bad, it is better that you approach your bank and see what can be done to remedy the situation. Bad loans are not as bad as the bad attitude of the borrower during the time of crises.