CBILS Issues

These lifeline loans have quickly become a burden for many businesses. If you are struggling to repay your loan, Bell & Company can provide you with solutions. ...more

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CBILS Issues

To help support businesses affected by the Covid-19 pandemic, the Government gave out generous support loans. The Coronavirus Business Interruption Loan (CBIL) schemes provided £79.3 Billion to struggling UK businesses.

The time has now come where repayments are coming into effect. If you are worried about how you are going to meet payments, you are not the only one.

If You Can’t Repay Your  CBILS Loan

Your business liability

There was a lack of due diligence when the Government implemented the CBIL  schemes. As a result, many ‘unviable’ companies have received loans.

If your company cannot pay back this loan, there should not be consequences if you have acted “reasonably and responsibly”.

Remember that if you cannot pay back your loan, you risk your credit score could be at risk. This will limit your attractiveness to future lenders or investors in the long term.

Your personal liability

Lenders required personal guarantees on CBILS loans over £250,000. Unfortunately, as a result, these directors are liable. Many thought that ‘government-backed’ meant Government protection. However, this is not the case for personally guaranteed loans.

To recover their money, lenders must demonstrate that they have exhausted all possible recovery channels. This includes options such as liquidation of companies, repossession of assets and even Bankruptcy.

For loans below the value of £250,000, the Insolvency Service can lift the ‘corporate veil’. This could potentially leave the director(s) personally liable.

If you are a sole trader

Unlike company Directors, you do not have the protection of a limited company. As a result, if you default, you are fully liable to repay your loan.

The lender cannot try to repossess your ‘principal private residence or primary personal vehicle’. This means that your home and main vehicle are safe. However, this does not mean your business and other assets are not at risk. Ultimately, your lender can also make you Bankrupt. This in turn puts assets like your home at risk.

You should act quickly to reduce the impact of defaulting on your loan.

Your Options 

Cases involving CBILS  can be complicated, especially when you factor in other liabilities. Often defaulting on one loan can have a landslide effect. This can result in requests to pay back other debts, potentially leaving you in a tricky situation.

If you cannot pay, it is vital that you act urgently. Delaying will only make the situation worse and can have serious consequences for you and your company.

We recommend consulting with insolvency experts like us to get an accurate understanding of your situation and your options.

Bell & Company have over a decade’s experience negotiating with business creditors, both for company and director’s liabilities.

Additional Resources

Download our Free GuideClick here to download our CBILS guide.

This guide contains everything you need to know about the CBIL and BBL schemes. It provides answers to the most commonly asked questions and outlines your options if you can’t pay.

 

 

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Get In Touch Today!

Our team are here to give expert advice and a tailored solution to your CBILS Issue, taking into consideration all aspects of the business.  If you face the pressure of being unable to pay your CBILS loan it is essential you take action, and secure the best advice in this matter.

Should you have any debt issues and believe you can benefit from our services then please call us today on 0330 159 5820.

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From the outset, we establish clear bottom lines with our clients, so we understand what their priorities are and what must be protected. We then create a strategy to navigate the way out of corporate and personal debt with impartial advice and rigorous action.

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There are some very sharp minds at Bell & Company, so we’re extremely adept at finding unconventional strategies and solutions to resolve our clients’ debt dilemmas. This means that when you’re with us, you can be assured that we’re working for your best possible outcome.

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