Question
I like many other have taken out a huge bounce back loan through my limited company of £50k as it was a struggle through the lockdowns.
I am still working and actually doing fairly well and am now making monthly payments for the loan.
The loan was extremely easy to get.
I didn’t have to physically sign anything so therefore don’t believe that I have a contract with them to pay this back.
Do you have any useful information regarding the bounce back loans and how liable we are?
Lewis
Answer
Lewis,
You ask a good question, and one there is limited information on. From a liability issue, I am sure the government feels you are liable; signing an agreement or not. Sometimes just the acceptance of the funds is an agreement.
You may need to seek legal advice on this.
Why are you querying this? Are you struggling with the payments?
You may wish to read this by the government.
I read this to mean if you fail to repay the loan, and get investigated by the government, they may wind the company up if found to be insolvent. Which really does no one any good.
I am curious as to your question, if you can afford to repay the loan?
Regards.
Jon
I answered your question regarding bounce back loans.
I am curious as to why you have the question you do, and also you may need legal advice to address this.
Regards,
Jon
Hi Jon,
Ths js for your reply and I will check out your link.
As a family we have discussed having a complete lifestyle change, so that would involve relocating, change of carreer etc.
We have only discussed this but as I have this BB loan, I am seeing what my options are because it seems like I can’t just close down business and seek a different life without paying this back first which would mean for the next 10 years of repayments.
Becoming insolvent itself costs money I’m sure so I was getting it touch to see if you knew much about it but it seems like most people are unsure exactly of what to do.
Regards
Lewis
Lewis,
It is still early days with these loans, but more will come out hopefilly in time.
Closing a business is as difficult as opening one.
Again, you may need legal advice. Closing the business, selling the business, are you attached to the loan as a guarantor, how is the business set-up, sole trader, LTD, etc, are all factors.
Regards,
Jon