In reply, SME owners have recommended declining interest rate, reducing the number of required paper documents, flexibility in collateral and introducing a borrower-friendly repayment procedure.
Interest rates are at historic lows, we know that they are going to stay at that level for longer than we originally thought, and creditors are increasingly willing to engage with debtors to agree informal repayment plans over formal insolvency procedures".
In other parts of the world many group lenders are now incorporating repayment capacity assessment into their procedures and offering individual loans to more trusted clients.
What has to be worked out, they say, is a procedure to determine which of the many repayment obligations should get priority.
One, such schemes must be streamlined and devoid of lengthy bureaucratic procedures that waste providers' time (this includes timely repayment schedules).
But it also requires, at a minimum, formulating transparent and accessible policies and procedures to effectuate borrower relief provisions like defense to repayment.
Complying with established IMF procedure, however, Greece in response withheld a €300m debt repayment due -- exercising its right to pay the total sum owed, €1.6b, at the end of the month.
But advocates here say that aspects of Spain's procedures — how quickly banks can foreclose, the interest rates they can charge and the repayment schedules they can demand — are particularly severe.
If you cannot access application forms for loan repayment on your lender's website, call your lender and speak to them about the procedure to extend your payments.
