Connect with us


The 4 Major Stages of Post-Pandemic Business Loan Delinquency

Loan delinquency differs from defaulting in that it only entails making a payment past the due date specified by the lender. Nevertheless, that doesn’t make it less of a crime you can be charged with and face the wrath of the law. Although many people understand this atrocity’s nature and seriousness, they still need more education on how it happened. Several sources discuss what loan delinquency is, but they don’t offer any information about its stages. The four points below show the main stages that culprits go through before committing this erroneous act.

1.     Intent to Commit

Like any other crime, loan delinquency starts with thinking about the intention of committing it. You can also refer to the intention stage as the psycho or mental phase, meaning everything here happens in the culprit’s mind. They’re the only ones who know what they’re about to indulge in. Priority Plus Financial condemns this act aggressively because it can lead to misunderstandings and substantial financial losses on the lender’s side.

Unfortunately, you don’t have any proof to punish someone just for thinking about committing a crime as long as they haven’t done it. Additionally, it’s hard to confirm that an individual intends to commit loan delinquency, considering that it’s a mental concept.

2.     Preparing

After the creation of intent to commit this crime, the culprits now plan and prepare how they’ll execute their thoughts. This is where the involved party gathers all the necessary resources to make it manageable to make late payments to facilitate their loans. Nonetheless, this only happens among borrowers who go through the intent to commit stage, considering that some may face loan delinquency for lack of money to make prompt payments. You should also note that intent to commit and preparation stages aren’t justifiable or punishable cases. This is because, at this point, the relevant authorities can’t prove that the suspects gear the intention and preparations toward the execution of loan delinquency.

3.     Attempt

An attempt refers to an individual’s movement towards committing loan delinquency after handling all the necessary preparations. From this description, you can conclude that attempting to commit such an atrocity is a crime. The law can hold an individual answerable for an attempt, considering it’s an offense beyond the preparatory phase of the delinquency crime. Additionally, the person is guilty at this stage, even if the odds of the execution of an offense seem and sound impossible.

4.     Accomplishment

The fourth and final stage is the accomplishment of the loan delinquency. This is where an individual now executes the plan they’ve prepared for in the above-explained three phases of the process. You can also call the accomplishment stage successful completion. The culprit is entirely guilty of the offense once their attempt to commit it is successful. Remember that the person will still be guilty of an attempt even if they failed in the accomplishment stage.

Many people globally know about loan delinquency, but they take it lightly. You may not understand the extent to which the affected victims are willing to go to get what rightfully belongs to them. Nonetheless, the first thing should be to know when this act is considered an offense by reading the four steps explained in this article.