Sadly many business owners are waking up to the reality that their business may not bounce back from the pandemic. A total of £46.5 billion of Bounce Back Loans have been lent to businesses in the UK.

A question on lots of directors minds is:

‘Can I Still Liquidate With a Bounce Back Loan?’

In short, YES YOU CAN…

A bounce-back loan is an unsecured debt which means if the company goes into liquidation the debt would be written off.
Normally when a bank lends you money they want some security like a charge or a personal guarantee. This was not the case with Bounce Back Loans. The bank who lent you the money had a guarantee from the British Business Bank and they will claim the money back from them and not you.

If your business has assets that the insolvency practitioner can realise then the BBL may get some money back as a return, in most cases, this will not happen.

Once your company is in liquidation the business has ended and all debts are included in the liquidation.

Be aware though that any personal guarantees that you did sign will be called in.

Tomorrow I’ll be discussing in what circumstances could you be made personally liable for a Bounce Back Loan.

If you are concerned about how you are going to pay back your Bounce Back Loan it’s important to get advice early. Get in touch with me for a no-obligation, no-strings chat about your options.

Any questions please let me know,

All the best,
Chris Worden,
1st Business Rescue

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