Cant afford to pay bbl company failing

Asgmb2021

Hi everyone.

I have a small business and took a bounce back loan in 2020 to help. My business is a small cafe and struggled through covid and is now failing. I have looked into liquidation but I don't even have the 5k or more or costs.

I have seen an advertisment for a company that will buy my company from me with the BBL. They charge a fee of £6000 and appoint new directors etc.

Are there any downsides to doing this 

tightauldgit

I assume you are a limited company? 

Is the business currently insolvent? How much do you owe? What assets do you have in the business? Do you have other creditors or is it just the BBL? 

If it's just repaying the BBL that is the issue I might start by approaching the lender and explaining that you are struggling to repay and see if there is anything they can do. If the business as a whole is failing with no recovery in sight then you will have to wind it up before you create bigger issues. 

If you are liquidating assets then I believe these can be used to pay the insolvency practitioners fees - I think your best bet is to speak to an expert first. This is not a field for well meaning amateurs I don't think. 

I'm not in the field so I don't know what these companies are offering exactly. However if you can't pay the cost of liquidation how would you pay the fees they are charging you to 'buy' your company?