asked 8 years ago

My business has a large overdraft on our current account. We started and ran up this overdraft initially as a partnership and then operated using it when we converted the partnership to a limited company.

We have the option of converting that overdraft into a loan in the ltd co name (with the directors/former partners guaranteeing it but not with it secured against any assets like our homes).

If in the future our business is not viable and we have to put it into liquidation would it be better for us to have this debt as the original overdraft or as the loan? The overdraft is not secured against any other assets.

Thank you in advance for any help or advice.

1 Answers
answered 8 years ago

If you require information on company liquidations then it would be best to refer to the Insolvency Service at http://www.bis.gov.uk/insolvency/Companies