Business Overdraft - Barclays - Outstanding Amount - VA (Resolve Loan) Adverse Credit? Personal Effe

mrbreak3r

Hello, I was wondering if anyone an please can advise from their experience? or inside knowledge. 
Barclays closed our Business Overdraft Facility - for our LLP - Limited Liability Partnership Business (Not LTD Company) By Letter - after a review.

Now our overdraft is due and we are outstanding 50k! We do not have the money to repay this facility immediately and they refuse to convert it to a regular repayment loan.. 

After speaking to them they have offered a Resolve Loan - Which appears to be a Type of Voluntary Agreement. on pretty reasonable terms.. before i said yes, they said that it may get passed onto Credit Agencies!? Does it or doesn't it?! - they would not say!

The question's i have:

1) How do credit agencies look at VA? - would it score adversely on the Business?
2) When its paid off - does the credit score return or does it take several years to recover?
3) As a director of the LLP (Not LTD) - does it affect my personal credit file?
4) Can Lenders i.e. credit card companies/mortgage companies see this as an adverse situation on my own personal credit file, when i need to renew my mortgage or apply for credit?
5) Has anyone had a resolve loan for their business? - what's your experience been like!


Sorry for all the questions - but got to make a decision on our next steps ASAP!

MEM62

As a director of the LLP (Not LTD) - does it affect my personal credit file?

An LLP does not have directors.  It has members or partners.  Neither does it (or you) have a credit score. The credit standing or the business will take a hit as you have a £50K debt you cannot service.  (Overdrafts are always a high risk and expensive way of financing a business)  However, you personal credit standing should be protected unless you put up any personal guarantees.         

DullGreyGuy

LLPs dont typically have directors, they have members often refered to as partners. 

LLP, LTD, PLC, Unlimited Company are all forms of incorporated entities and whilst different rules apply to each class there are overarching principles that apply to all, namely they are a separate entity int their own right to the people that operate them etc. 

Did you or the other partners give any personal guarantees to the overdraft?