If your loan reaches four full payments in arrears we will send a Default Notice to your business’ registered address and a Formal Demand for repayment to all loan guarantors. At this stage the personal guarantor(s) become personally liable for the total debt, in addition to the borrower being liable under the loan contract. A lender can pursue a personal guarantor before, or at the same time as, pursuing the borrower and does not have to wait for the borrower to pay (or see if the borrower can pay) before it demands payment from the guarantor(s).
After Funding Circle defaults a loan, we work with borrowers/guarantors to recover the full balance of the loan (including all unpaid principal, interest, charges and costs) in order to return this to the investor(s). Whilst the full balance of the loan (including all unpaid principal, interest, charges and costs) is due at the point of default, if a borrower/guarantor is unable to repay the entirety of the debt in one payment, we do agree payment plans for repayment of the debt over a period of time. However, we may require security to support such a payment plan. We will discuss the options available with you and we therefore encourage you to contact us after default. If an amicable agreement is not reached, we can also take further action after the account has defaulted, including passing the debt to a collection agency and taking court action.