In the event that you fail to repay your loan you will not be allowed to borrow from the lender again until you have paid of the balance in full. Only reputable collection agencies that comply with all lawful collections practices are employed and the customers credit rating may be negatively impacted if payment is not made in a timely fashion.
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They want protection against losing those profits, and thats why prepayment penalties can be included in some contracts. What is a business loan.
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The borrower repays the loan under the normal terms of the agreement. Many business loans require a guarantor, someone who signs off, to guarantee the loans repayment.
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