- Your business is liable for the full loan amount plus interest, as the Government’s guarantee is to the lender, not the business.
- If you miss four contractual payments (i.e 90 days late from the date of your first missed repayment) then we will need to default the loan.
- Defaulting a loan is a last resort for us, as this will affect your business’s credit rating.
- However, we will stay in contact with you throughout this period to help you manage the arrears, and we will explore all other options with you before reaching this stage.
- If we do have to default the loan, we will seek full repayment of outstanding principal and contractual interest from the business.
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