Funding circle loan guarantor liability
Discussion
Just a question for someone who may know (I don’t want to ring funding circle)
We have a loan and me and my two partners have signed personal guarantees, we have given no security, if my company ceases trading what are the consequences for me and my partners?
One partner is married and house is in joint names as is mine, the third partner lives with his parents.
Any advice greatly appreciated, it would not worry me if I was liable for 1/3 of the loan but don’t want to end up paying it all as I have the most assets.
We have a loan and me and my two partners have signed personal guarantees, we have given no security, if my company ceases trading what are the consequences for me and my partners?
One partner is married and house is in joint names as is mine, the third partner lives with his parents.
Any advice greatly appreciated, it would not worry me if I was liable for 1/3 of the loan but don’t want to end up paying it all as I have the most assets.
Please read the post as i said I am happy to pay what I owe, as an aside the company has not folded and if it does the maximum we will be out of pocket is £30,000 so would I be liable for the full £30,000 or £10,000, the preferred option is to allow the loan to carry on in a different company name but I don’t think that I possible
The moderators might wish to consider rewording the title of this thread, as anyone who doesn't read the thread might reasonably assume Funding Circle themselves have folded, and cause unfounded rumours to be be spread.
P.S. I have no connection Funding Circle or any of their customers or creditors.
P.S. I have no connection Funding Circle or any of their customers or creditors.
Cheers for the replies, title a bit wrong company has not as yet folded and we are working to ensure that we can pay all debts, if it does come to the point where it is no longer viable to carry on trading wanted to know worst case scenario, (I have previously never had a bad debt in my name and do not intend to now just wanted to know the possible consequences)
mikeh501 said:
bit of a brass neck asking how you might get out of a loan tbh.... im an investor on FC, so reckon you should pay it back in full!
If you've signed PG's then patently they will come after each of you, likely jointly and severally for the whole lot.
He's not asked how to get out of it. He's asked what his liability is.If you've signed PG's then patently they will come after each of you, likely jointly and severally for the whole lot.
He should pay what he legally owes and nothing more.
If the personal guarantee is on a joint & several basis, the amount legally owing will be the full outstanding debt.
In an ideal world, each party will pay an equal share. In reality one or more parties may not be able or willing to pay & in that case the lender will take the path of least resistance & go after those with assets and or the ability to pay.
In an ideal world, each party will pay an equal share. In reality one or more parties may not be able or willing to pay & in that case the lender will take the path of least resistance & go after those with assets and or the ability to pay.
desolate said:
Their standard guarantee is joint and several so you are on the hook for all of it if the other guarantors can't pay.
I don't know how aggressive they are in their recovery process.
Check the transferability provisions. They probably can sell to anyone they like (especially post event of default), so OP could end up with some nasty people coming after them. I don't know how aggressive they are in their recovery process.
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