Business loan suspended – lawyer Eser advises those affected on how to protect their rights

In a time of economic challenges, many entrepreneurs have serious problems when their banks terminate existing loans.

This can have far-reaching consequences for the companies affected, especially if there was no prior warning or the termination was given incorrectly.

Attorney General Eser, an expert in banking and capital market law, offers legal advice and extensive support to affected companies to protect their rights and find appropriate solutions.

“A business loan cancellation can threaten many companies,” explained attorney Eser. “It is vital that the validity of the crown is examined for those affected and possible options for action are considered. “

The lawyer Eser supports entrepreneurs in this difficult situation by:

– Examination of the end of the loan: A detailed analysis of the legality of the loan and possible contract violations is carried out.

– Negotiating with the bank: Individual solutions will be developed in consultation with the credit institutions to end the loan reversal or to open other financing options.

– Legal representation: If negotiations do not lead to an agreement, the lawyer Eser represents his clients inside and outside the court to terminate illegal loans and to make claims for declare damages.

These legal options depend on the exact situation at the end of the loan and the terms of the contract. Below you will find a more detailed overview of the additional legal measures:

1. Investigation of the reasons for termination
– Termination for breach of contract: If the bank terminates the loan agreement without sufficient reason, for example late payment or other breach of the terms of the loan, this could be classified as breach of contract . In such a case, it is possible to legally challenge the limit.
– Setting a date: The loan agreement often specifies that a date must be set to correct the breach of contract before it is completed. If this is not done, the termination may be illegal.

2. Intercessory prayer
– If the end of the loan threatens serious bankruptcy, an urgent application for interim legal protection can be submitted. This can prevent the limit from taking effect immediately and have additional consequences, such as paying the full amount of the loan immediately.

3. Claims for damages
– If the loan was terminated wrongly and the company was damaged as a result (eg through loss of orders, contractual penalties or risk of bankruptcy), claims for damages can be made against the bank.

4. Consumer credit law
– In some cases the entrepreneur could be considered as a consumer according to the meaning of consumer protection law, eg B. for sole proprietors or freelancers. The provisions of the consumer credit law apply here, which imposes stricter requirements on the bank’s limit. This includes, for example, the right to a longer notice period or protection against unreasonable grounds for termination.

5. Debt restructuring negotiations
– Debt restructuring is an option to replace the existing loan with a new loan from a bank or other financial institution. A lawyer can support the entrepreneur by negotiating better loan conditions or finding other sources of financing.

6. Risk limitation and restructuring
– Restructuring the company: One legal option is to restructure the company to reduce the risk of bankruptcy or canceling further loans. This may also involve strategic negotiations with creditors to obtain payment relief.
– Risk limitation for managing directors: Especially in the case of GmbHs and other companies with limited liability, managing directors should monitor compliance with the bankruptcy rules to reduce personal liability risks.

7. Citing inconsistencies in bank behaviour
– In some cases, it can be argued that the bank’s behavior violates good faith, especially if the bank has a long-term business relationship and causes damage by ending it to suddenly, without prior warnings or agreements.

8. Banking supervision measures
– Complaint to the Federal Financial Supervisory Authority (BaFin): In the event of an illegal termination or other breach of banking regulations, a complaint can be submitted to BaFin. Although this has no immediate legal effect, it could increase the pressure on the bank to negotiate.

9. Infringement measures
– Self-administration and protective shield proceedings: If the end of the loan threatens bankruptcy, the company can file for bankruptcy in a timely manner and, if necessary, apply for self-administration or protective shield proceedings. These procedures allow the business to continue operating while a debt restructuring or recovery plan is being implemented.

10. Get an expert opinion
– If there is any uncertainty regarding the validity of the loan limit or the economic effects, an expert report can be prepared. This will help strengthen your negotiating position with the bank or be a witness in a legal dispute later on.

11. Request for other offers
– In some cases, legal pressure on the bank can help by asking it to make other offers. For example, a repayment delay or a reduction in the interest burden could be implemented if it is not reasonable to terminate the loan in full.

12. Examination of the right of withdrawal
– If the loan agreement was terminated prematurely and there is a violation of the right of withdrawal or the cancellation policy, this could lead to the reversal of the loan. It could be that the company would get better conditions back or that the termination would be ineffective.

LAO has several legal actions that can be taken when a business loan is cancelled. A quick and strategic approach is essential to ensure the survival of the company and minimize the potential damage.

An experienced lawyer specializing in banking and capital market law can provide you with comprehensive support in reviewing the limit, communicating with the bank and, if necessary, initiating a lawsuit.

For more information and an initial consultation, Attorney Eser is available to you using the following contact information:

Experienced and successful legal representation
Take advantage of the opportunity to find out about your legal options at an early stage and to find out if your claims can be enforced.

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About the Viceroy of Eser
Lawyer Eser has specialized in banking and capital market law for more than 20 years and advises entrepreneurs throughout the country, especially in emergency situations such as the termination of corporate loans. With his extensive experience, he supports companies in protecting their rights and finding specific solutions.