In the event that a non-limited company (such as a sole trader, unlimited company or a general partnership) loan goes into default, Funding Circle Trustee Limited (FCTL) will attempt to recover the maximum amount possible as a creditor of the business through the courts, in the same way as FCTL would do for limited companies. The legal process will be slightly different, as the owner(s) are personally liable for the entire debt jointly and severally so we would directly pursue them for the amount outstanding, rather than the company. This would involve taking a legal course of action, including, but not limited to, suing an owner/partner, petitioning for bankruptcy and/or obtaining a charge on personal property. With cases where the loan is secured on an asset, we will be able to take possession of the asset in order to repay the loan.
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