Just after some advice please. An old friend very kindly lent my business 2K, (otherwise I would have had to shut down) but I havent been able to repay it in the timescale I had hoped and now she is threatening me with legal action Please can I ask a few questions to see how best to deal with this 1. The loan was for my business and paid into business account 2. Ltd Company 3. I've no assets, and owe money to Landlord (who is ok with debt at the moment. I keep him updated and pay him when I can) 4. I do owe British Gas about 3K - although this is in dispute at the moment 5. I didnt want things to become nasty with friend, and can see that I'm at fault in not being able to pay back in the timescale I'd hoped but business has suffered in Recession and I didnt expect us to go into another Recession. I'd hoped we'd be out of it by now. 6. Ive explained situation to friend but she is fed-up and want money back now or will go down legal route. 7. I am unable to get any finance/loans other than work coming in as I've screwed up my credit file trying to keep buisness going - which I have for the last four years of the Recession, so really dont want to give it up now! Please can someone advise me of best options? If I get taken to court, although I have no assets with business, can they close me down? Friend says she will accept monthly payments but I cant guarantee these and also she wants them at a high rate every month to clear it quickly. I dont draw a salary as I dont have enough spare money to do this, and before you ask I havent been on holiday for the last 5 years!