Resigning as company director - Secured Loan

Debbie.B.

Good Morning everyone, I am in a bit of a pickle.

I have had a recent downturn in my personal circumstances,
I am currently a director of A company, 12 months ago I took out a secured loan from barclays on my property, kept up payments etc..

Now I was looking to expand the business and I applied for a personal loan (25k) from natwest in august who offered a great apr however it got declined how strange..
I was advised to check my credit file however all was clear.

I did a little bit of digging on this website and online, contacted NH and CIFAS and can see a marker has been placed from Capital One on my name (march 2018) for apparently some application fraud, I actually didn't apply for this.
I contacted capital one who refuse to take this marker off, I have contacted CIFAS for a review.

Now what am I going to do next?
I was thinking to resign as a director from the company and it over to a relative who has a good credit, it is coming up to the 2nd year of trading.

The reason for this is I wanted to apply for a overdraft/loan to purchase equipment with 2 years accounts however with a CIFAS marker on my file I know this will be automatically turned down and they will close the business accounts down. I am worried everyday I wake up to see my accounts closed.

If I resign as director and pass over to a relative:

Do I have to repay the loan back before I resign? Or does it still continue whilst I have resigned?
Do I have to contact the bank to do this? When I do this will they see the marker and automatically close the accounts?
Should I just keep the account for 6 years, not taking any credit for this time period and then after applying for a loan?

It is a shame that I have this on my file, reading up on these cases I don't know what I can do.

[Deleted User]

Why are you applying for a personal loan for a business?

MEM62

Debbie.B. wrote: »

Good Morning everyone, I am in a bit of a pickle.

I have had a recent downturn in my personal circumstances,
I am currently a director of A company, 12 months ago I took out a secured loan from barclays on my property, kept up payments etc..

Now I was looking to expand the business and I applied for a personal loan (25k) from natwest in august who offered a great apr however it got declined how strange..
I was advised to check my credit file however all was clear.
Why are you applying for a personal loan to expand a business? This should be a business loan.

I did a little bit of digging on this website and online, contacted NH and CIFAS and can see a marker has been placed from Capital One on my name (march 2018) for apparently some application fraud, I actually didn't apply for this.
I contacted capital one who refuse to take this marker off, I have contacted CIFAS for a review.
To be clear, you didn't apply for a loan with Capital One? In that case you need to do some further investigation to get the marker removed.

Now what am I going to do next?
I was thinking to resign as a director from the company and it over to a relative who has a good credit, it is coming up to the 2nd year of trading.

The reason for this is I wanted to apply for a overdraft/loan to purchase equipment with 2 years accounts however with a CIFAS marker on my file I know this will be automatically turned down and they will close the business accounts down. I am worried everyday I wake up to see my accounts closed.
If the CIFAS marker is against you personally, it should have no bearing on the company. You will achieve nothing by passing the company onto a relative.

If I resign as director and pass over to a relative:

Do I have to repay the loan back before I resign? Or does it still continue whilst I have resigned?
Do I have to contact the bank to do this? When I do this will they see the marker and automatically close the accounts?
Should I just keep the account for 6 years, not taking any credit for this time period and then after applying for a loan?
All these questions are irrelevant as handing over the company is not the way to go. Address the CIFAS marker.

It is a shame that I have this on my file, reading up on these cases I don't know what I can do.

Your business and personal accounts are separate issues. You really need to get to the bottom of the issue with the CIFAS marker. That said, expansion should not be by means of a personal loan anyway. This should be a business loan.