Personal Guarantee transfer

[jasonwright]

Hi,

If a director has a personal guarantee on a company loan, and the director knows the business is about to be closed down - whats the best and easiest way to approach the lender and have the loan formally transferred into his name from the business?

Are they likely to object? Will they want to see the business formally close first, or would they be happy to transfer over prior to closure?

Thank you
Jason

 

[kulture]

Personally i would suggest not transferring the loan until the business has closed and all creditors paid off as much as possible with any assets etc. That way the loan may be reduced slightly. If you transfer the loan before closing the company then there is no chance that any asset sale will reduce the loan as it has been taken out of the pecking order.

By all means talk to the bank and keep them informed. That way they will know what is going on and be less concerned as they will be assured that you intend to honour the guarantee and are planing ways to do it.