Business Bank Guarantee

Dear All,

I need help with an issue i have with Barclays bank wanting a balance of £344.29 for a company guarantee on the back of an overdraft for £25,000 I took out in July 2014 and stop using in August 2015 and the service was cancelled. The business failed in July 2019 sadly and I handed everything over to the Liquidator but unfortunately despite me leaving £2,500 in the business bank account. I have received a letter dated 8th August 2019 demanding payment plus interested and the personal guarantee still stands. Does this sound right to anyone else I would like to contest it?

thank you
Charles

Comments

  • JCS1
    JCS1 Posts: 5,276
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    The personal guarantee is to cover the bank if the business fails, it still stands. Might be worth asking them for a breakdown of costs first though.
  • RedRobbo
    RedRobbo Posts: 57
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    Hi JCS1,

    Thank you for your comment, does this mean if the liquidator is to rack up debts in the business bank account I will be liable?
    Charles
  • RedRobbo
    RedRobbo Posts: 57
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    JCS1 wrote: »
    The personal guarantee is to cover the bank if the business fails, it still stands. Might be worth asking them for a breakdown of costs first though.

    I started the business in 2009 with Barclays and did not have to sign a bank guarantee then, this is only in relationship to the overdraft facility in 2014, does this make a difference?
  • Hello, we to have a overdraft facility with HSBC.

    We have never signed any personal guarantee.

    We questioned the bank they said to us because we have good trading history. When question the bank they said they was happy with the risk.

    Our company was started in 2011.

    A personal guarantee is a separate document that would say something “you are bound by these terms of personal guarantee for example”
  • Also if there is money left then then his would be paid to the bank after liquidator fees.
  • that is my question, I have written to the bank and asked for a statement to show how the account has gone into a negative figure, currently have not received a response from the Barclays.
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