06 October 2014
My client want to purchase one running unit.that unit is fail to repay bank loan last installment and CC facility is also enjoyed by that unit in same bank. My client want to change the firm name at the time of purchase and want to surrender all old legal registration number. he will take new legal registration from all respective department. and he want be to continue with same loan on new name with same bank. weather is it possible?
06 October 2014
all future plan remain same as it is. my client is also partner in same type of business in other unit. so, he is experienced in that type of industries. he want to run that new unit with his brand name.
06 October 2014
agreed with ur intention but the lender needs to be convinced..usually they ask for a declaration for assuming the same liabilities as accepted by the current owner..u have a talk for more clarity on the subject with the lender.
06 October 2014
cant say with full confidence as yes because the decision shall be taken after investigating the net worth of new unit, taxaes paid in prev years and other financial criterias like various ratios calcuated etc...it all depends on the lender
06 October 2014
banks are more than happy to replace borrowers in case of defaults. As long as you are not looking for hair-cuts, moratoriums etc and have tangible net-worth to sustain loan amount, bank dont have much problem. However, given that banks would be having lien over the assets, they simply prefer to collect their dues from the sale consideration to be paid to the seller and only the net liability may be transferred to you.