£50K Interest Free Loan for 12 Months

[GhostofTarbera]

They're the sort of muppets that will be targeted.

No chance

And when HMRC puts up tax and robs pensions to pay for all this, only a few like you will not have benefited from all this


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[ladymuck]

They're the sort of muppets that will be targeted.

Targeted for what and by whom?

I don't recall having to provide receipts to prove that the money was spent on the "right" stuff.

If the funds are extracted from the company legally, and the loan is repaid in full, what is there to investigate?

[jamesbrown]

One person I know is going to pay off all their credit card/loan Debt 30K+ from his divorce and payment holidays end, will save him £1000 a month on interest payments alone, was to good an offer to refuse


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They're the sort of muppets that will be targeted.

[GhostofTarbera]

Just wondering for all those people applying for the loan, what are you actually using it for? Is there some magic interest tree I don't know anything about, or is everyone gambling on the stock market/bitcoin?

I presume not everyone getting the loan is using it to just survive as the majority on here probably have reasonable warchests....

One person I know is going to pay off all their credit card/loan Debt 30K+ from his divorce and payment holidays end, will save him £1000 a month on interest payments alone, was to good an offer to refuse


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[mjcp]

They should, in theory. But can you imagine the optics? The banks flagged that as a concern at the outset of the CBBL scheme - big meanie bankers coming after the local corner shop etc. - so they will probably favour treading very lightly and punting it to gov't ASAP, but there are also clear procedures, so I don't know. Debt forgiveness by the gov't must be a distinct possibility in the medium-term.

Or, they will punt to the Insolvency Service, who will be understaffed, so they will punt to the blood suckers, sorry, Insolvency Practitioners, who will look at each case:

Directors have assets? Yes? Reopen company and bleed them... No? move on.

Optics retained.

M

[jamesbrown]

It being a fully government backed loan, I do wonder if the banks would pursue a claim. I suspect they have to evidence they tried to get the money before getting HMT to cough up.

They should, in theory. But can you imagine the optics? The banks flagged that as a concern at the outset of the CBBL scheme - big meanie bankers coming after the local corner shop etc. - so they will probably favour treading very lightly and punting it to gov't ASAP, but there are also clear procedures, so I don't know. Debt forgiveness by the gov't must be a distinct possibility in the medium-term.

[ladymuck]

It being a fully government backed loan, I do wonder if the banks would pursue a claim. I suspect they have to evidence they tried to get the money before getting HMT to cough up.

[jamesbrown]

Ordinarily speaking, you cannot simply walk away from a company debt and hope that limited liability will save you.

For example, if the money has been further borrowed as a director's loan, that would be repayable on closure.

If a director has acted inappropriately (e.g., borrowed this money with no intention of paying it back), then there are avenues to have the debt transferred via a misfeasance claim. It really depends on the circumstances though. Obviously, it would not be a voluntary liquidation because there are outstanding creditors.

That said, it would look bad for big banks to be pursuing small businesses en masse and there were noises about this when the BBLS was first announced. They will probably go easy, on the whole, and I wouldn't be surprised to see some level of debt forgiveness for those that legitimately cannot pay it back. However, if someone took a loan with no intention of paying it back or borrowed to invest in BTL or some such, I expect they will come down very hard on those people in due course, especially if they cannot pay it back (e.g., because they followed scootie's investment advice).

[b0redom]

Just wondering for all those people applying for the loan, what are you actually using it for? Is there some magic interest tree I don't know anything about, or is everyone gambling on the stock market/bitcoin?

I presume not everyone getting the loan is using it to just survive as the majority on here probably have reasonable warchests....

[GhostofTarbera]

same for dissolved company?

They can whistle for it then


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