Secured business overdrafts

​A business overdraft can be called in at any time by your business bank. This means your business bank will want you to pay back the total amount owed on the overdraft straight away.

If your business overdraft is secured on your home or your business premises, you could be at risk of losing them. Your bank will normally need to take court action to repossess your property. You do not have the same rights as someone with a household mortgage to ask the court for time to pay the debt back. They would normally only give you a small amount of time to either pay the debt in full or sell your property. Contact us for advice.

Extra advice:

secured loans

If you are thinking of taking out a new secured loan, contact us for advice. If you miss payments on a secured loan your property could be at risk.

Your bank may ask you to turn the money you owe on your overdraft into a secured loan. Think carefully about whether you should do this. You need to make sure you can afford the payments by working out a budget. If you miss payments on a secured loan, your business premises or home could be at risk.

Your budget

 

To be able to offer as much as you can to your business bank it is important to see if there are any ways you can increase your income.

Ways of increasing your business income and Ways of increasing your household income

All monies charge

Extra advice:

asking for time to pay

If you have an all monies charge and the bank takes court action, the court cannot follow the same rules as if it were a household mortgage. They can only give you a short amount of time to either pay the debt in full or sell your property. Contact us for advice.

If you have a secured business loan or overdraft, you may have signed an agreement called an ‘all monies charge’. This means that any money you owe to that bank now, and in the future, is also secured on your property. If you miss payments on a secured loan, or the bank calls in your secured overdraft, all the money you owe to that bank on every agreement you have with them will become payable straight away.