4 steps you need to know: If you have a history of late payments, how to get a loan approved

4 steps you need to know. If you have a history of late payments, how to get approved for a loan
The term "problem debt" or "NPL debt" is a term that many people may not want to hear, do not think of being, and do not want it to happen to them. NPL debt is debt that is overdue for more than 90 days, which will greatly affect your financial credibility.

If you have outstanding debts or do not pay on time, it will be an indicator that the contract is not a contract, that you are in debt and not paying the debt. This kind of thing will not only affect your future loan application, but also make it harder to get approved than someone with a clean history. But it is not impossible. Let's take a look at the 4 steps that must be followed to get the loan approved.

1. Face each other to negotiate a solution. Because the debt overdue or late payment may have been unintentional, such as a fire incident, factory damage, product production not being able to keep up, or an accident requiring a long work stoppage, resulting in a loss of income, resulting in no money to pay the debt on time. Therefore, if a problem occurs, the first thing to do is to negotiate a solution with the financial institution that is your creditor to solve the problem. The sooner you negotiate with the creditor, the better, because you may be able to solve the problem together before it becomes an NPL

Or if it has already happened, you can still negotiate. What is often called debt compromise includes extending the debt repayment period by reducing the amount of installments to be paid each month, selling assets to pay off some of the debt, or others, depending on the case

2. Commitment to solving problems reflects determination. Because the factor in considering the bank's loan is mainly the determination to pay off the debt. If you do not give up and try everything to make debt resolution successful, whether it is cooperation in paying off the debt or strictly following the repayment terms, this will clearly reflect your determination to solve the problem

3.Create a new history and pay on time. Since a history of default is a factor in the bank's loan approval process, you will need some time to prove yourself. It's not like you've been paying normally for 2-3 months and then you'll apply for a loan because the bank is not yet confident in your ability to pay. Therefore, you should try to build a new, good history for at least 12 months to prove that your financial status has returned to normal.

4. Clear NPL debts completely. Keep evidence and don't let it disappear. If you can clear this debt completely, the financial institution that is the creditor will issue a confirmation document, which you must keep well to show the bank that you are borrowing from that you can really dear the problematic debt.

For those who are in troubled debt or have NPL debt, proving yourself will take some time. During this time, your business must be very financially disciplined. Do not neglect your account statement because

it indicates cash flow

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