Misuse of Bounce Back loan monies

https://www.gov.uk/government/news/director-banned-after-each-of-his-four-companies-wrongly-claimed-bounce-back-loans

Another example of the misuse of Bounce Back loan monies by limited company directors.

In our capacity as appointment taking Insolvency Practitioner’s, we are seeing examples of this only more frequently. We are undertaking numerous ongoing investigations relative to potential misuse of both Bounce Back and CBILS loans.

Often, such loans to limited companies have been used for non-business related matters resulting in personal liability for directors.

On the insolvency of a corporate entity, individuals are increasingly facing significant personal financial exposure due to overdrawn director loan accounts and personal guarantees that have been provided against company debts.

If you are a company director and have concerns on these matters please contact us for honest and impartial advice on how to best manage the situation.