What happens if my company cannot repay a loan?

2 min read

Recourse to companyWithout a PG

PG = personal riskIf you signed one

Act earlyMore options

Where the lender can turn

Without a personal guarantee, a lender's claim is against the company. With one, it can pursue you personally. This is the single biggest reason to know whether a loan carries a personal guarantee before you sign.

Why acting early helps

If repayment looks difficult, contact the lender before you miss a payment. Many will restructure, extend the term or agree a temporary arrangement — options that shrink once you have defaulted. Good lenders prefer a workable plan to a default.

What it means for you

Borrow without a personal guarantee, and communicate early if trouble looms.

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.

Frequently asked questions

Can the lender take my house?

Only if you signed a personal guarantee that puts your assets at risk. With no personal guarantee, the lender's recourse is to the company. Credicorp takes no personal guarantee.

What should I do if I might miss a payment?

Contact the lender early, before the missed payment. Most will work with a borrower who communicates, through a restructure or temporary arrangement. Silence removes those options.