Overdrawn Director's Loan Account

In a volatile and uncertain landscape, business has never been more challenging. With challenges, however, also come opportunities, yet being able to seize these when they arise is often contingent on having the right finance in place. Sourcing appropriate funding can be a serious challenge itself and the assistance of an experienced team of commercial finance experts can be invaluable.

With so many financial demands on businesses these days - rising business tax and ever-increasing energy bills −paying a commercial lease can be difficult even though it’s a priority payment.
The problem if you don’t pay is that your landlord can take enforcement measures quickly in order to collect their debt. In some cases they don’t even have to go to court to take the legal action that severely damages your business.
Following the onset of the Covid-19 crisis, the government introduced the Coronavirus Act, a piece of emergency legislation to help companies during these extremely challenging times. As part of this legislation, landlords are unable to forfeit the leases of tenants who fall behind on their rent during this time. Following a three month extension, this ruling is now in place until the end of September 2020. While this provides companies with breathing space for the short-term, it is important to remember that this is a temporary measure which will come to an end . Once this happens, you will need to make arrangements with your landlord to clear the arrears which have accrued during this time. Taking advice now will put you in the best position possible when you are faced with resuming your rent payments.
So let’s look at what a commercial lease is, and how you should proceed if you can’t pay.

How to Stop Your Company From Going into Administrative Receivership
If your company has defaulted on a debenture that was created before 15 September 2003 then you could be at risk of being put into receivership, in which case you should continue reading the guide below, especially if you're interested in saving your company. If you've defaulted on a debenture or loan agreement that was created after the above date then you're at risk of being put into company administration.