You need to repay your entire loan immediately if you default and we demand full payment.
Events of default are defined under Clause 9 of the SBCS Terms and Conditions (we gave you a copy as part of the SBCS loan application). The most common events of default include:
- not making repayment by the due date of your repayment plan
- the business ceases or is sold
- bankruptcy, liquidation or other creditor arrangement
- giving a false or misleading statement or declaration in the loan application
- use of loan funds to pay for personal expenses or passing the funds through to the shareholders or owners of the business or organisation.
Your top up loan or second loan will be in default if you have defaulted on an earlier loan, even if the default has been sorted out to our satisfaction.
If you applied for a loan with false or misleading information, or gave us false or misleading information later, you should repay the loan in full right away, with interest. You could also be investigated for offences under the Crimes Act 1961. Make a Small Business Cashflow Scheme disclosure
Last updated:
15 Nov 2024