4.2k draw down loans with iwoca and cap on tap can't pay

[hideyspidey]

Hi. I have 3k with iwoca and 1.2k With cap on tap. How do I find out if i signed a personal guarantee to repay if company has no money. What will happen to me if i can't repay the loans. I have no overdraft with my business account.
Does anyone have any dealings with these companies? Thanks

 

[UK Contractor Accountant]

Ask them for a copy of signed guarantee!

 

[KAC]

On their website in the FAQs, IWOCA say that they require personal guarantees

Are loans from iwoca secured?
No. iwoca offers unsecured loans with no asset requirements. For limited companies we do ask for a personal guarantee, typically from a director or shareholder.

 

[hideyspidey]

Thank you. I thought so with iwoca but what about cap on tap. They don't say.
So a DCA will come after me even if business closes?

 

[KAC]

Credit cards rarely take security

 

[Mr D]

Thank you. I thought so with iwoca but what about cap on tap. They don't say.
So a DCA will come after me even if business closes?

For Iwoca yes they will come after you personally if your limited company cannot pay.

 

[Mark T Jones]

As ha# been suggested, the answer will lie in the paperwork you signed, and of which you should have copies (either paper or online)

 

[hideyspidey]

Seen the paperwork and both have personal guarantee so that's no good

 

[hideyspidey]

I can clear it to 1000 owing on cap on tap and 0 on iwoca. Would I be better owing 500 on each and dealing with dca and the threats. Surely they'll not be too threatening at 500 quid owing

 

[fisicx]

Surely they'll not be too threatening at 500 quid owing

Yes they will, because it won't be £500. Once they start adding late payment and admin fees it will climb and climb and climb. They don't tell you how much this will be on their website - but it's likely to be punitive.

 

[Mr D]

I can clear it to 1000 owing on cap on tap and 0 on iwoca. Would I be better owing 500 on each and dealing with dca and the threats. Surely they'll not be too threatening at 500 quid owing

The threats and action will be the same. The one thing they cannot do is bankrupt you. Yet.

 

[Mad Frog]

A lot of these companies count on scare tactics and the hope that people don't know the law.

Write/call them explaining your situation and arrange a realistic monthly repayment plan, asking them to freeze interest and charges (make sure you have everything in writing once agreed). They may ask for a financial statement, this is not a legal requirement (as many companies will have you believe) and you can refuse this, but it may help with negotiations, by talking to them you will be seen as being proactive about the debts and they will be much more inclined to work with you on paying them back at an affordable rate.

 

[hideyspidey]

Thanks, paid off IWOCA today