If a business ceases to trade, and the loan has a personal guarantee, Funding Circle Trustee Limited and our in-house debt-collection team will pursue the guarantors for the unpaid sums due. If the loan has an all asset security agreement attached, Funding Circle Trustee Limited and our in-house debt-collection team will attempt to realise these assets to repay the sums due to investors. If the loan has specific asset security, Funding Circle Asset Finance will take possession of the asset and attempt to realise this asset to repay the sums due to investors.
If the loan does not have any security, Funding Circle Trustee Limited will attempt to recover the maximum amount possible as a creditor of the business through the courts. Funding Circle will try to recover as much as possible, but a recovery is not always possible, in which case, the value of your investment could go down.
In the event that Funding Circle is able to recover interest in addition to the outstanding principal, the recovered principal will appear in the “recoveries” section in your summary tab and the additional interest recovered will appear in your “interest” section.