Glossary · Doing the deal
Demand for Payment
In short
A formal notice from the lender demanding immediate repayment of the entire outstanding loan balance, usually issued after a loan default is not cured. This is a critical step before collection.
What it means in a deal
If your loan remains in default after a Notice of Default, the lender may issue a Demand for Payment, accelerating the entire loan. This often precedes legal action or collateral liquidation. Responding to this demand requires immediate professional legal and financial advice.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Demand for Payment
- What counts as "my own money" for the down payment?
- Can a credit card cash advance be used for my down payment?
- Can I use a loan from someone else for my down payment?
- Can I use money gifted from a friend for my down payment?
- Is a loan secured by personal assets eligible for the down payment?
- Can I use gifted funds from a non-relative for my down payment?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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