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  • FIRST POST
    • Joewasherein2019
    • By Joewasherein2019 17th May 19, 6:00 PM
    • 22Posts
    • 3Thanks
    Joewasherein2019
    Help on giving loan and reclaiming.
    • #1
    • 17th May 19, 6:00 PM
    Help on giving loan and reclaiming. 17th May 19 at 6:00 PM
    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.
Page 1
    • zx81
    • By zx81 17th May 19, 6:03 PM
    • 22,055 Posts
    • 24,037 Thanks
    zx81
    • #2
    • 17th May 19, 6:03 PM
    • #2
    • 17th May 19, 6:03 PM
    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.
    • Gaz83
    • By Gaz83 17th May 19, 6:05 PM
    • 3,758 Posts
    • 7,027 Thanks
    Gaz83
    • #3
    • 17th May 19, 6:05 PM
    • #3
    • 17th May 19, 6:05 PM
    Can I persue owners directly for assets?
    Originally posted by Joewasherein2019
    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."
    • Joewasherein2019
    • By Joewasherein2019 17th May 19, 8:24 PM
    • 22 Posts
    • 3 Thanks
    Joewasherein2019
    • #4
    • 17th May 19, 8:24 PM
    • #4
    • 17th May 19, 8:24 PM
    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?
    • zx81
    • By zx81 17th May 19, 8:30 PM
    • 22,055 Posts
    • 24,037 Thanks
    zx81
    • #5
    • 17th May 19, 8:30 PM
    • #5
    • 17th May 19, 8:30 PM
    No. It's a limited company. Someone needed to sign the agreement.
    • Ben8282
    • By Ben8282 17th May 19, 8:40 PM
    • 2,975 Posts
    • 1,555 Thanks
    Ben8282
    • #6
    • 17th May 19, 8:40 PM
    • #6
    • 17th May 19, 8:40 PM
    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?
    Last edited by Ben8282; 17-05-2019 at 8:49 PM.
    • Kentish Dave
    • By Kentish Dave 17th May 19, 8:57 PM
    • 35 Posts
    • 59 Thanks
    Kentish Dave
    • #7
    • 17th May 19, 8:57 PM
    • #7
    • 17th May 19, 8:57 PM
    As others have said, you did not lend to the owners, you lent to the company.

    ďLimitedĒ for a company means limited liability, as in the shareholdersí 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?
    • Joewasherein2019
    • By Joewasherein2019 17th May 19, 9:22 PM
    • 22 Posts
    • 3 Thanks
    Joewasherein2019
    • #8
    • 17th May 19, 9:22 PM
    • #8
    • 17th May 19, 9:22 PM
    Hi there,

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

    No Iím 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.
    • Joewasherein2019
    • By Joewasherein2019 17th May 19, 9:24 PM
    • 22 Posts
    • 3 Thanks
    Joewasherein2019
    • #9
    • 17th May 19, 9:24 PM
    • #9
    • 17th May 19, 9:24 PM
    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 Dave
    • By Kentish Dave 17th May 19, 9:53 PM
    • 35 Posts
    • 59 Thanks
    Kentish Dave
    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.
    Originally posted by Joewasherein2019
    I hope that itís not a life-changing amount, as Iím afraid that there is quite a high probability that itís gone.
    • Joewasherein2019
    • By Joewasherein2019 17th May 19, 10:20 PM
    • 22 Posts
    • 3 Thanks
    Joewasherein2019
    Hi there,

    Not at all we’re millionaires.
    • Kentish Dave
    • By Kentish Dave 17th May 19, 10:41 PM
    • 35 Posts
    • 59 Thanks
    Kentish Dave
    Hi there,

    Not at all weíre millionaires.
    Originally posted by Joewasherein2019
    All good then. This was a small amount of your net worth that you put into a company for philanthropic reasons knowing that you were taking a risk, and so it came to pass.

    Chalk it up to experience and move on would be my bet.

    Clearly you donít understand enough about business, finance etc to even understand what a limited company is so perhaps go a bit more down the traditional route with the rest of your portfolio.
    • Joewasherein2019
    • By Joewasherein2019 17th May 19, 10:48 PM
    • 22 Posts
    • 3 Thanks
    Joewasherein2019
    We just wanted to help this young chap out.

    Live and learn.

    We made most of our money from selling land to housing developers from my parents.
    • Tarambor
    • By Tarambor 18th May 19, 1:40 AM
    • 5,066 Posts
    • 3,986 Thanks
    Tarambor
    If you're millionaires then you really need to go and get some financial education because the question you asked is basic financial knowledge when doing business. I guess though that when your money basically requires zero effort to gain then you tend not to bother so much.
    • Sea Shell
    • By Sea Shell 18th May 19, 6:21 AM
    • 1,686 Posts
    • 2,909 Thanks
    Sea Shell
    If you're millionaires then you really need to go and get some financial education because the question you asked is basic financial knowledge when doing business. I guess though that when your money basically requires zero effort to gain then you tend not to bother so much.
    Originally posted by Tarambor
    I agree, you need to work on your financial savvy-ness, otherwise you might not be millionaires for very much longer.

    Were you routinely used to handling large amounts of money before, I guess, you inherited this land from your parents, which you sold off. It really can be daunting to go from "modest" amounts to "substantial" amounts at the drop of a hat, if you've not had any prior experience.
    Last edited by Sea Shell; 18-05-2019 at 6:26 AM.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • DCFC79
    • By DCFC79 18th May 19, 7:03 AM
    • 34,192 Posts
    • 21,605 Thanks
    DCFC79
    The moneys gone, you may get a portion of it back, all depends what other creditors there are in the queue.
    • Joewasherein2019
    • By Joewasherein2019 18th May 19, 7:51 AM
    • 22 Posts
    • 3 Thanks
    Joewasherein2019
    Thanks for everybody’s contributions so far.

    I really appreciate the follow up.
    • Joewasherein2019
    • By Joewasherein2019 18th May 19, 7:53 AM
    • 22 Posts
    • 3 Thanks
    Joewasherein2019
    Hi Sea Shell,

    Yes my parents gifted me land/ flats for
    My 18th many years ago.

    They was farmers in many local communities villages etc hence the land sold for new housing developers.
    • Joewasherein2019
    • By Joewasherein2019 18th May 19, 8:01 AM
    • 22 Posts
    • 3 Thanks
    Joewasherein2019
    We received large sums monthly but
    This is all managers by letting agent who simply looks after the flats for me and forwards the rest after there %.
    • Sea Shell
    • By Sea Shell 18th May 19, 8:37 AM
    • 1,686 Posts
    • 2,909 Thanks
    Sea Shell
    Obviously we don't know how much you now have in liquid assets, (cash/shares) in addition to the flats (freehold/leasehold? are you the Landlord???) but have you also sought advice from an IFA since coming into money?

    Also, have a good read of the Savings and Investments section of this forum. It's a goldmine of information!!

    Hopefully you'll not have any more right-offs!!
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
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