Starling Bank - Limited Company Bounce Back Loan

[bradfordlad]

Appreciate these are a relatively new thing so there may not be much experience, but if anyone can give me any kind of advice with my situation it'd be appreciated. 

 

Basically, I am sole director of a Ltd Co. 

Took out a BBL as that was the only "help" the government would give me, through Starling Bank.  Very quick - application to funds arriving was about 2 hours! 

Business has been very difficult since, blah blah blah.... 

 Starling offered a few options to help everyone, so there was a 6 month payment holiday. Check.   

3 lots of 6 months at interest only. Check.

Extend the term to 10 years. Check.   

 

I've now run out of options, but there's no way I can afford to start up the full payments as they want.   

I can continue to pay interest only and review it every 6 months, but I suspect at some point I am going to have to call it quits and tell them I can't afford to pay.    I plan on closing the business down in the next 2-3 years anyway. 

 

Does anyone know what the situation would be if I were to just stop paying the loan?   

As I say, it's a Ltd Co - am I right in thinking that as it was backed by the government, if I default the bank would get the money back from them? 

Would it impact my personal credit record?   

 

I have no intention or need to be borrowing money as the company, so if the business got a default (is that even a thing?!) then how might that affect me personally?

 

Sorry to be so vague but this is doing m head in! 

 

Many thanks all

[dx100uk]

i think things are different if you are a registered limited company yes. though im not sure where any personal guarantee plays a part if you signed one of those too.

is your business address sep from your home address?

 

there are quite a few threads here on these loans

have a read

 

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[bradfordlad]

Cheers DX - no there was no personal guarantee. That's what was "controversial" about the scheme, that lenders could lend and the government would give the guarantee.  Business address is my home address. 

 

Thanks

[dx100uk]

ok ...worst case scenario ....

as your business address is your home address you need to be careful here not to let this escalate too far, as if you eventually goto court and lose, then bailiffs could be a problem, but as i say thats very far away if if if ever.

 

id write to the bank as the person did in that other thread and outline your proposals going fwd.

 

dx