Contractual debt is fairly self-explanatory – when you sign up for a service like a mobile phone or TV package, you are essentially entering into a form of contracted debt for a set period. The same concept applies if a borrower enters into an agreement with a lender.
The borrower agrees to repay funds to a lender, on an arranged basis.can be used to finance numerous essentials, including long term assets.
If you fall behind on payments or stop paying your contract, your account will default and the debt you have taken out will be dealt with under the collections process for unsecured debts.
Contractual debt presents a serious challenge to businesses that are struggling to thrive financially but working with a trustworthy finance provider can be the solution SME’s are looking for.
Nucleus Commercial Finance understand that contractual debt can become a huge issue for SME’s. If a business finds themselves in a lot of arrears and are unable to pay money back to creditors, this can put a massive strain on a business and pressure begins to mount.
We have worked with various cash-strapped businesses that had cash tied up in contracts and have managed to provide solutions to the endless cycle that many SME’s face. Nucleus Commercial Finance strive to design funding solutions that are both practical and sustainable.