Self defeating curved ball - business loan

PHILHW

IainMacca wrote: »

For example (again in my case so may not be relevant):

The account where the debt resides belongs to the limited company, so (irrespective of the personal guarantee) the actual account is in the company’s name and not mine.

What the bank tried to do was create a new ‘loan’ account under MY name and then place the debt from the limited company into it.

If they had done this (if I had allowed them to) then presumably it would then have appeared on my credit file.

Yes I thought that is what you were eluding to. THe situation is the same, the debt was to our limited company and in its name, of which we are directors.

PHILHW

DVardysShadow wrote: »

Not quite. If I am understanding this correctly, in your role as guarantor, you do not have a loan account with the bank. That resides with the company. While that arrangement stands, you are obliged as guarantor to make good the shortfall on the company account. But while it is the company loan is in default, they cannot touch your credit record.

So what the bank will attempt to do is to get you to take out a loan with them to repay the company loan. Once you fall for this, if you do not meet the payments for your loan, they will default you personally.

.

They have already tried that, offering us a personal loan, at quite a high rate over quite a few years, and saying that they were trying to help us!

We refused of course!!!!

We are dealing with the banks collection agent.

My only concern was a default appearing on my personal credit file, which from this thread, is now looking less likely.

Stewart_78

What HSBC did to us is essentially give us no option but to repackage our borrowings into a new loan with many, many demands including monthly management accounts etc. So they've got us now. Our no1 is to pay it off.

IainMacca_2

PHILHW wrote: »

Yes I thought that is what you were eluding to. THe situation is the same, the debt was to our limited company and in its name, of which we are directors.

Good to hear, one of the upsides and fundamentals of a limited company is that the directors within that limited company are somewhat personally protected. So as long as you were not trading illegally (over-trading and all that) then your personal file should not be touched.

Please let us know how you get on and all the best for the future of your business.

Macca

IainMacca_2

Stewart_78 wrote: »

What HSBC did to us is essentially give us no option but to repackage our borrowings into a new loan with many, many demands including monthly management accounts etc. So they've got us now. Our no1 is to pay it off.

Bear in mind they will try many tactics in order to make their balance sheet look better - at branch level and further (especially hsbc - that is an active tactic I'm lead to believe (I know a few people on the inside), if you stand back and think about the debt hsbc have - they would much rather move a bad/old debt into a 'current' loan account - it makes their balance sheet look so much stronger! There is room for negotiation! Bear that in mind when talking to them.

Sorry if this discussion is getting off topic as it's more business related.

Stewart_78

We are paying the loan no problem, it's the demands for management figures all the time and the constant nagging that is causing us problems. Already landed us with a bigger accountants bill in order to get this to them and that's not helping at all. I know I signed up for it but I had no choice. It was that or they call it in and that would have been a disaster at the time for a number of reasons. I know they probably want to closely monitor the business and make sure they are going to get their money, it's just that it's making it harder to survive spending so much admin and money of the extra stuff they want.

All I want to do is keep ploughing on and hopefully from April, we are going to accelerate the repayments to get it done in 2-3 years instead of the 8 left. I'm hoping that at least will stop them from constantly nagging. With that and my personal DMP, its sometimes difficult to be positive which is so important in business.