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My Ltd company took out a short term loan about 18 months ago. It was originally to be repaid over a 12 month period with a monthly interest of 5.7%. This years sales have been down considerably and so we’ve struggled to meet the loan repayments and for a couple of months, the lender agreed to repayments just covering the (eye watering) interest.
Unfortunately, sales haven’t improved so we had to inform the lender we could no longer make payments. They defaulted the loan and called on myself and my wife as guarantors, so we both applied for breathing space which has just come to an end.
Due to the excessive interest (yes I knew the interest was high when we took out the loan), even though we’ve paid over £20,000 to the lender, we still owe over £19,000 of the £25,000.
The lender has said they are 100% not willing to discuss any form of repayment plan with the exception of payment in full and have said they will be issuing court proceedings.
What I am wondering, is, assuming they do go straight for a court claim without any reasonable discussion beforehand, roughly how long would it take for them to get a judgement and os there any way I can delay said judgement?
The reason I ask is that we usually have significantly higher Christmas sales than the rest of the year (last year we sold over £100k of products in December alone), so I’d like to think we would be able to pay the overdue balance at the end of the year so if there’s any way of ‘delaying’ things that would be really helpful.
Obviously, I don’t dispute the fact we owe the lender, however I wonder whether I can file a dispute based on the amount we’ve paid vs the amount still outstanding etc?
Unfortunately, sales haven’t improved so we had to inform the lender we could no longer make payments. They defaulted the loan and called on myself and my wife as guarantors, so we both applied for breathing space which has just come to an end.
Due to the excessive interest (yes I knew the interest was high when we took out the loan), even though we’ve paid over £20,000 to the lender, we still owe over £19,000 of the £25,000.
The lender has said they are 100% not willing to discuss any form of repayment plan with the exception of payment in full and have said they will be issuing court proceedings.
What I am wondering, is, assuming they do go straight for a court claim without any reasonable discussion beforehand, roughly how long would it take for them to get a judgement and os there any way I can delay said judgement?
The reason I ask is that we usually have significantly higher Christmas sales than the rest of the year (last year we sold over £100k of products in December alone), so I’d like to think we would be able to pay the overdue balance at the end of the year so if there’s any way of ‘delaying’ things that would be really helpful.
Obviously, I don’t dispute the fact we owe the lender, however I wonder whether I can file a dispute based on the amount we’ve paid vs the amount still outstanding etc?
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