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Business founders/entrepreneurs

Bounce back loan, closing business

3 replies

fruitstick · 01/05/2022 20:00

It's a long story, which I won't go into.

I set up my business as a Ltd company 12 years ago. It was going well and I had some freelance staff but then a personal tragedy meant I had to take a year out of the business and, whilst some business could continue, I lost most of my clients. Then Covid arrived and I was left trying to buildup business back in lockdown, whilst also suffering from depression.

During that time I got a bounce back loan of £15,000.

I've really tried, genuinely I have, but I don't have the mental capacity to build my company back. I'm tired of working by myself and constantly having to go out and look for clients. Networking fills me with panic.

I've applied for a salaried job, I think I need some consistency and the support of a bigger organisation.

I haven't got it yet but if I did, what would happen to my loan? I've still got £13,000 to pay back but I've spent most of it trying to keep afloat for the last year.

If I close the company voluntarily, will I have to pay it back, or will I have to factor the repayments out of my salary (the salary is lower than I have been earning so it's not an easy decision).

OP posts:
fucketyfuckwit · 01/05/2022 20:01

Surely as a limited company there is no personal liability. Isn't that the point?

fruitstick · 01/05/2022 20:02

Yes but are there rules around closing the company?

OP posts:
Leafyhouse · 08/06/2022 22:32

Well, you just need to appoint a liquidator, and they'll take care of all of that. Just remember not to use your cash to pay your creditors, pay the liquidator's fees with it instead.

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