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Closing a Start-up Business - Advice on Loan and Assets
Hello,
I was looking for some help regarding my start up business, and associated start-up business loan.
Back in January I was approved for a start-up loan, and immediately things up and running to work. The loan was for £15,000 and my mum went as a guarantor for £7500 of it. Up until last month everything was going fine with the business. I should probably add, there was two loans for £7500. One was government funded, the other was funded by the start-up loan company.
Early last month, I was rushed into hospital and was kept in for 3 weeks. I went in with a chest infection, which turned out to be pneumonia. It was also discovered that I have a large blood clot on my left lung. Long story short, I wasn't far off death.
Having now come out of hospital, I'm not physically fit to complete the job I was doing. I made the mistake of going back to work like nothing had happened, I ended up going back to hospital for a further couple days. Accordingly I'm wanting to sell up the business assets and get the start-up loans paid off.
The nature of the work is vehicle recovery and transport, and I have a recovery truck. Now when I took the loan out with the start-up company, they asked for the vehicle details so they could register an interest on the vehicle (HPI). As the biggest company asset, It makes sense to shift the van first, HOWEVER, I know you can't sell a vehicle with interest on it?
I spoke to the start-up company, and they explained I'm not allowed to sell the vehicle. I sent them copies of letters from the hospital and my GP regarding my illness, and explained that the vehicle isn't being used, and I'm no longer operating the business. I asked whether they would take and sell the vehicle, as they have an interest in it, but they're not interested in doing that either.
So my questions;
A: What options do I have regarding payment of the loan? I have every intention to pay, but I'm not able to make payment ddue tto health and not being able to work at the moment.
B: What can I do regarding assets? Can I sell the van, do they have to take it back? There's nothing in my contract regarding the other assets, other than they can take them if things go wrong.
C: Where does my mum stand as a guarantor? I don't want her to be involved in this. It's not her fault I was ill, and I don't see why it should affect her credit rating.
As it stands, things are going to get worse for me. The time I spent in hospital cost dearly. My cashflow wasn't brilliant in the first few months, and I was only just managing to cover bills and make a small wage. So being in hospital not earning meant that the bills weren't all paid in full, which meant charges etc.
Also, Close Brothers finance like calling you multiple times a day when you tell them you're in hospital too. Expecting me to have raised full payments when I'm been laid in bed, on an IV drip, on oxygen. They mentioned about sending a doorstep collector too, to which I told them what ward and hospital I was in, the guy never did show up. I kept logs of all the calls (Well my phone did! I was a vegetable most days will the pills and injections). Surely that comes under harassment? I explained the situation to them, and asked for more time, even told them I didn't have my cards with me or anything (which I didn't). But they weren't having it!
Any help would be gratefully received.
Kind Regards,
Jamie.
I was looking for some help regarding my start up business, and associated start-up business loan.
Back in January I was approved for a start-up loan, and immediately things up and running to work. The loan was for £15,000 and my mum went as a guarantor for £7500 of it. Up until last month everything was going fine with the business. I should probably add, there was two loans for £7500. One was government funded, the other was funded by the start-up loan company.
Early last month, I was rushed into hospital and was kept in for 3 weeks. I went in with a chest infection, which turned out to be pneumonia. It was also discovered that I have a large blood clot on my left lung. Long story short, I wasn't far off death.
Having now come out of hospital, I'm not physically fit to complete the job I was doing. I made the mistake of going back to work like nothing had happened, I ended up going back to hospital for a further couple days. Accordingly I'm wanting to sell up the business assets and get the start-up loans paid off.
The nature of the work is vehicle recovery and transport, and I have a recovery truck. Now when I took the loan out with the start-up company, they asked for the vehicle details so they could register an interest on the vehicle (HPI). As the biggest company asset, It makes sense to shift the van first, HOWEVER, I know you can't sell a vehicle with interest on it?
I spoke to the start-up company, and they explained I'm not allowed to sell the vehicle. I sent them copies of letters from the hospital and my GP regarding my illness, and explained that the vehicle isn't being used, and I'm no longer operating the business. I asked whether they would take and sell the vehicle, as they have an interest in it, but they're not interested in doing that either.
So my questions;
A: What options do I have regarding payment of the loan? I have every intention to pay, but I'm not able to make payment ddue tto health and not being able to work at the moment.
B: What can I do regarding assets? Can I sell the van, do they have to take it back? There's nothing in my contract regarding the other assets, other than they can take them if things go wrong.
C: Where does my mum stand as a guarantor? I don't want her to be involved in this. It's not her fault I was ill, and I don't see why it should affect her credit rating.
As it stands, things are going to get worse for me. The time I spent in hospital cost dearly. My cashflow wasn't brilliant in the first few months, and I was only just managing to cover bills and make a small wage. So being in hospital not earning meant that the bills weren't all paid in full, which meant charges etc.
Also, Close Brothers finance like calling you multiple times a day when you tell them you're in hospital too. Expecting me to have raised full payments when I'm been laid in bed, on an IV drip, on oxygen. They mentioned about sending a doorstep collector too, to which I told them what ward and hospital I was in, the guy never did show up. I kept logs of all the calls (Well my phone did! I was a vegetable most days will the pills and injections). Surely that comes under harassment? I explained the situation to them, and asked for more time, even told them I didn't have my cards with me or anything (which I didn't). But they weren't having it!
Any help would be gratefully received.
Kind Regards,
Jamie.
