BOUCE BACK LOAN - CREDIT REPORT IF MISSED PAYMENTS

ryantemp9

I run a sole director limited company, I understand that the loan is against my company and not me which is fine. However I work in an industry where I have to have a clean credit report at all times, if I take the loan and for any reason the company cant pay it in the future does anyone know if this will effect my personal credit/credit report, the information from my bank is very vague. Its testing times and I don't want to take something on that I may not be able to pay back which could effect me for life, I also don't want my company going under now (just don't know what to do)

dunstonh

It's not a loan in your name.   Its a business loan.    You and your business are two separate legal entities. 

I don't want to take something on that I may not be able to pay back which could effect me for life, I also don't want my company going under now (just don't know what to do)

If your company fails and as long as you have acted properly then you are ok.  However, if you take credit knowing that the company cannot repay it then you are potentially at risk of personal loss.  If the liquidator proves there was wrongful trading then they can use your personal assets.   The expectation is that the CV will result in a relaxation of the wrongful trading rules.  i.e. if you were viable before CV and it was only the CV that resulted in your failing.

If you have borrowed from the bank previously, they may have set up security against your property. That may still be active