I want to pay early for the loan and finish my loan tenure.
Foreclosing a loan or paying for the loan before the loan tenure is a step that can be taken when the business has good cash flow.
And after you decide to go with it, remember these effects it can have:
- You might be asked to pay foreclosure charges.
- Foreclosure might lead to a shortfall in cash flow.
- Paying off the loan will show higher profits which will make you end up paying more taxes.
- The lender might show it as unsatisfactory repayment because foreclosing might prove as a loss to the lender.