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Help on giving loan and reclaiming.

edited 30 November -1 at 1:00AM in Loans
34 replies 2.2K views
Joewasherein2019Joewasherein2019 Forumite
65 posts
10 Posts First Anniversary
edited 30 November -1 at 1:00AM in Loans
Hi there,

I am wondering if someone can help me please?

I provided a business loan to a limited company and they paid me monthly interest. However now they have gone out of business and I want my loan back of £76,000.

Can I persue owners directly for assets?

Do I have any chance the loan was all in the company name and
I received interest payments until they went under.

Many thanks.
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Replies

  • zx81zx81 Forumite
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    If the company has gone under, then you'll just one of a number of creditors.

    Contact the administrators, if any, but you're unlikely to get anything back.
  • Gaz83Gaz83 Forumite
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    Can I persue owners directly for assets?
    Nope. That's the nature of a limited company.

    You're just a creditor, it's the risk you take when investing money in a company.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • Joewasherein2019Joewasherein2019 Forumite
    65 posts
    10 Posts First Anniversary
    So I’m not entitled to anything?

    I checked all paperwork and it’s got no name of the director it says the ltd company name and signed for and dated by the owner.

    So surely if the owner signed it he’s responsible?
  • zx81zx81 Forumite
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    No. It's a limited company. Someone needed to sign the agreement.
  • edited 17 May 2019 at 9:49PM
    Ben8282Ben8282
    4.8K posts
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    edited 17 May 2019 at 9:49PM
    Why exactly did you choose to lend £76,000 to this limited company? It just seems a rather unusual thing to do.
    You have no claim against any individual. If instead of lending to the company you had lent the money personally to a director or the directors, they would be personally liable but as things stand you are simply another creditor of the company and will need to make a claim to the administrator. Do you believe thta this company has any assets?
    You mention that the company has been paying you interest. Are you a loan shark by any chance?
  • Kentish_DaveKentish_Dave
    842 posts
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    As others have said, you did not lend to the owners, you lent to the company.

    “Limited” for a company means limited liability, as in the shareholders’ liability is limited to their share capital.

    If there has been fraud then that could change things but you will probably just have to line up alongside the other unsecured creditors now to see if there are enough assets to pay you out.

    May I ask, why did you lend so much to a limited company, and did you properly study their books first?
  • Hi there,

    The loan started off at £45,000 we topped up during the time. To help the guys out.

    No I’m not a loan shark I was giving rates much better than banks to help them out way below
    Market value borrowing.

    I like to help people.
  • Yes, study books and everything.

    We believed in the owners and wanted to back them and there vision. Just got delisted by major retailers for not enough volume etc.
  • Kentish_DaveKentish_Dave
    842 posts
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    Yes, study books and everything.

    We believed in the owners and wanted to back them and there vision. Just got delisted by major retailers for not enough volume etc.
    I hope that it’s not a life-changing amount, as I’m afraid that there is quite a high probability that it’s gone.
  • Hi there,

    Not at all we’re millionaires.
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