Unsecured loan of 200000£ Against PG

Uddin

:mad:Hi, I am new to this forum I took a loan of 200000 for the term of 5 years and monthly instalment was 4000£ . They have taken my personal guarantee against the loan. However I invested the amount in clothing business. I paid a few instalments and later the loan went into 91 days deafault . The money went to fashion business and some how the product I imported is not selling . I want to pay the principal only in small instalments and the bank is asking full interest. Please help me to negotiate with the lenders?

System

Its not an unsecured loan if you have given a personal guarantee so you personally are as liable for it as your business. There's nothing we can do to help you negotiate with the lenders, you're going to have to have that conversation yourself. All you can do is lay out your finances and ask them what they're willing to accept.

sourcrates

Hi,


There is nothing anyone on this forum can do to help you negotiate with your bank.


My suggestion would be to call business debtline and ask there advice :



https://www.businessdebtline.org/

macman

Why do you think the loan is unsecured if you gave a personal guarantee? That means it is secured against your own assets, which presumably include property?

DCFC79

£200k in a clothing business. Did you have experience of this sector ?

Reduce the price so it sells and make up the short fall with a job.

dealer_wins

Got to be a wind up. Someone that gets a £200K loan to fund a substantial business venture will understand the basics of business and what a personal guarantee means.

DCFC79

dealer_wins wrote: »

Got to be a wind up. Someone that gets a £200K loan to fund a substantial business venture will understand the basics of business and what a personal guarantee means.

Or just naive.

kazwookie

As DCFC79 says, reduce the price of the clothes, and get another job to pay your debt.

How did you get 200000 loan, did you present a business plan?

How are your marketing these clothes? online/ markets / car boots?

Can you sell the stock as a job lot / or three or four job lots, to off load it, and pay the money back.

You need to do something urgently as the interest rates for this are going to be very high

antrobus

Uddin wrote: »

:mad:Hi, I am new to this forum I took a loan of 200000 for the term of 5 years and monthly instalment was 4000£ . They have taken my personal guarantee against the loan. However I invested the amount in clothing business. I paid a few instalments and later the loan went into 91 days deafault . The money went to fashion business and some how the product I imported is not selling . I want to pay the principal only in small instalments and the bank is asking full interest. Please help me to negotiate with the lenders?

I would assume that you have a company, Fashion Ltd, that has borrowed £200k (the APR seems to be 7.7%) and you have given a personal guarantee against the loan.

Your business venture has not been the success you hoped. The company has defaulted on the loan. You want to want to repay "the principal only in small instalments".

The blunt answer would be; no chance.

Faced with such a proposal the bank will put your company into receivership, sell the stock (whatever) for what it can get, then call in your guarantee and take your house, your car, or whatever else it can gets its hands on.

Your only alternative is Emergency Plan B, where you convince the bank that you have a new business plan that demonstrates how you are going to repay this £200k plus interest plus charges.

foxy-stoat

You must have equity in a property or the bank wouldnt lend you £200K - better get it on the market quick or the bank may force the sale and you will end up paying them more in fees.

Or go back to school next week and ask a moderator to lock this thread.