I am thinking of foreclosing the loan. Is it a good option?

#1

I want to pay early for the loan and finish my loan tenure.

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#2

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.
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