If you’re unable to make a payment on your asset finance agreement, it’s crucial to act quickly to protect your financial standing and minimise negative consequences. Below are key steps you should take:
1. Review Your Finance Agreement
- Check the terms: Look for details about late payments, grace periods, penalties, and repossession rights.
- Identify your obligations: Understand the consequences of missing payments, including late fees, increased interest rates, and default procedures.
2. Contact the Finance Provider Immediately
- Explain your situation: Providers may be willing to work with you if you’re upfront about your financial difficulties.
- Request a temporary solution: Possible options include:
- A payment extension (short-term grace period to catch up on payments).
- Payment holiday (temporary suspension of payments).
- Restructured payment plan (spreading the remaining balance over a longer period to reduce monthly payments).
3. Explore Payment Assistance Options
- Depending on your situation, you may be able to access financial support or modify your agreement to assist your cash flow