What happens if you default on a business loan?

Defaulting on a business loan is a reality for many Canadian businesses, especially during COVID-19. But what happens when you default? And are there any ways to avoid the worst consequences of a default? What to expect when your bank demands payment The first thing the bank will do will be to demand payment andContinue reading “What happens if you default on a business loan?”

BEWARE OF DEBTOR-IN-POSSESSION FINANCING: THE RISKS TO EXISTING LENDERS AND VENDOR-TAKE-BACK MORTGAGEES

​Priority is a major consideration for any lender when evaluating risks associated with financing. This becomes all the more important when an insolvent debtor seeks to restructure and access debtor-in-possession (“DIP”) financing (also referred to as “interim financing”). DIP financing is financing obtained by an insolvent debtor when restructuring their business. It is unique becauseContinue reading “BEWARE OF DEBTOR-IN-POSSESSION FINANCING: THE RISKS TO EXISTING LENDERS AND VENDOR-TAKE-BACK MORTGAGEES”