My 15.4% business loan

Lord_Snoopy

Hi guys .. can anybody give me some advice re. my 15.4% business loan that was once an overdraft!

I had a business with another guy that racked up an 18 grand overdraft . The bank manager decided that a business loan would be 'better' for all concerned. The business folded but I'm stuck with the now £15,000 balance which I have to find £400 a month to pay. This is very difficult as I'm not really earning much at the mo. Also, my ex. colleague has disappeared, leaving me with the whole loan! Haven't contacted the bank yet, but going to have to come up with a plan soon. Anybody got any ideas to make this debt more affordable, I think the rate is extortionate!!??

PNPSUKNET

You could try and transfer it to a personal loan, although sounds like you were not an ltd so credit raiting maybe low. Can your partner get low apr loans?

jonesMUFCforever

If you are not earning much how do you expect to repay the loan whatever the rate is?
Unless your credit score is A1 then you will not get a single digit interest rate loan.

Were you in a partnership? if so then you are in a joint and several liability situation whereby the bank can come after one or both of you for repayment.
Have you considered suing your partner for the debt?

You say that bank manager said a business loan would be better for you - just remember though if you had not taken out the loan then the debt would still be there but on overdraft.

Lord_Snoopy

Don't get me wrong .. I want to pay the debt but the rate is killing me .. there's stuff in the news just today about the rates to small businesses!! B.T.W. My ex. bus. colleague is now living in Brazil, so the bank don't have the slightest interest in him now!! Cheers for the response!

[Deleted User]

As one of the earlier posters said, the problem is the banks can go after either of you - and as they've got you in their sights they'll choose you!

Can you confirm it was not a ltd or LLP?

Lord_Snoopy

The company was a partnership and a Ltd during its life .. just finding out which it was and when!!

jonesMUFCforever

If it was a Ltd company they can only force you to pay the debts of the company if you signed a guarantee.