- Original Poster
- #1
I keep seeing mixed information online about Bounce Back Loans — especially whether banks can chase directors personally — so I thought it might be worth clearing it up here.
A Bounce Back Loan is a company debt, not a personal one. It sits with the limited company, not the director. That means if the business can’t repay it, you’re usually protected by limited liability – the lender can’t automatically go after your personal assets.
The exceptions are where the loan was misused or the company carried on trading when it was clearly insolvent. In those cases, the Insolvency Service can investigate and, if necessary, hold a director personally responsible.
If you used the loan for genuine business costs and acted responsibly once things got tough, you shouldn’t be personally liable. There’s a lot of noise out there on this topic, but that’s the basic position.
A Bounce Back Loan is a company debt, not a personal one. It sits with the limited company, not the director. That means if the business can’t repay it, you’re usually protected by limited liability – the lender can’t automatically go after your personal assets.
The exceptions are where the loan was misused or the company carried on trading when it was clearly insolvent. In those cases, the Insolvency Service can investigate and, if necessary, hold a director personally responsible.
If you used the loan for genuine business costs and acted responsibly once things got tough, you shouldn’t be personally liable. There’s a lot of noise out there on this topic, but that’s the basic position.
