Business loan

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ferraribo

Guest
Hi there, i've got a bussines loan from BOI to start off my own bussines but, as we know thinks are too quiet right now and cant afford to make my repayments and I will stop making it. Does anybody know if I would get arrested for that? What could happen to me?
 
Re: Bussines loan

Are you a sole trader or a limited company? If the latter, did you sign a letter of guarantee or offer any security?
I would strongly advise against burying your head in the sand, although I do not think that you are in danger of being arrested - I think it takes a lot of effort and time for it to come to that.
 
I am a sole trader and I did not sign any letter of garantee or security because it was a bussines start-up package just a standart contract. What should I do? What can Them do to me?
 
Re: Bussines loan

I am a sole trader and I did not sign any letter of garantee or security because it was a bussines start-up package just a standart contract. What should I do? What can Them do to me?
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I think your best option would be to contact the bank and explain the situation. If you are upfront and honest with them then more than likely they will work with you to get through it. Even if it means reducing the payments and extending the term of the loan. You are more likely to risk legal action by just stopping paying and burying your head in the sand. It might be a painful situation but in the long term I think you are better keeping in contact with the bank.

What business are you in? Maybe there are some ways that you can get some more customers. Even though there is talk of a slowdown in the economy if you are providing a worthwhile service then there is always someone outthere that will need it. Don't get bogged down thinking oh the economy is slowing down therefore it is not my fault. Get out there and do all you can to get business and if there really is no demand for your core business then diversify or go and get a part time job to keep you going.

Don't just roll over and blame business failure on the economy at the end of the day it is down to you.

Good luck.
 
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