help with a bussiness loan

clarerachel01

Hello
I am hoping someone can give us a bit of advice
My husband opened a flooring shop a few years ago along with someone else
the 1st year did as well as could be expected for a new business starting up ... in the 2nd year things started to quieten down so they discussed this with there accountant who advised they get a buisiness loan so they could re stock the shop and do some advertising also paying off some debts owed on the shop ...
She told my husband and his partner that she could get this on some kind of goverment scheem ... so they went to the bank along with there accountant and the loan was granted for £25,000 ... after getting more stock ect the shop went down hill and in the end they had no choice but to close the shop before it got into more debt ... the shop went into recivership ..
Since then my husband and his partner have been getting demands from the bank regarding the money owed (25,000)
They have been in touch with there accountant who is doing nothing to help them ...
The bank have told my husband and his partner the money owed has to be paid because they went guarentees on the loan ... this may sound stupid and they should of read the papers in more detail ect but they trusted what the accountant told em and signed for the loan...
We dont have a problem paying the loan back if we can do this is small amounts ect ...
Because they went guarentee on the loan could this put our house at risk ? would it be classed as a secure loan?
can we make them an offer of repayments ect?
Any help would be very welcome
many thanks
clare

jonesMUFCforever

Could it be a Small Firms guarantee loan underwritten by the government?
If so (of what I can remember of these) they were available to people who did not have security but wanted to set up businesses.
If so then loan would be repaid by the government if the business folded.
Could the bank be after any business overdraft not covered by the loan?
I would dig out all the paperwork on this and seek legal advice pronto.
If it was a straightforward Business loan then to secure the loan guarantee, the partners would have required to provide some security. This could well be your home but you would have had to sign a form consenting to this in front of a solicitor. Do you remember being asked to do this?