www.iva.co.uk

Hi we Entered an IVA just over a year ago its all been going well but we run our own business we asked several times if this would affect the business and even had two credit cards left out as we use them for the running of the business which is stated in the IVA.
we were told several times that our personal IVA would not affect the business however it has and we can not get any funding for the business as company's look at personal finances and it is affecting how we can run our business as we need funding to assist with a large job we have secured just seeing if there is any way I can get round this issue as I said was told it would not affect the business need advice on what I can do to help my business along now and in the future as we have four years left on the IVA and cannot continue the growth of our business with no funding help we employ several people including ourselves and would not want this to end our business
thanks in advance for any advice
Kay Ganley

Hi Kay and welcome

An IVA will affect your ability to obtain credit, this should have been clearly explained. If you run a limited company this in itself would carry on as usual but any funding would most probably have to be personally guaranteed by the directors and your personal IVAs would probably put a stop to this

Regards

There's a possible way try looking at "small self administered scheme" SSAS. Business owners looked at this route when the banks stopped lending. If you need any more info just ask

Are you trading as a sole trader, partnership or limited company, Kay.g?

Hi thanks for help so far we are a limited company.

I think it was wrong for your IP firm to tell you that a poor personal credit history would not affect your ability to raise finance in the limited company.

These days, as you probably know, the need for personal guarantees to support limited company borrowings is very commonplace, and having an IVA is bound to affect this. You may want to discuss this further with your IP - which firm are you with?

I advocate anyone involved in a business to use the services of an insolvency practitioner familiar with working with small businesses. The larger, more factory based firms, may not always have the correct expertise to firstly advise appropriately, and secondly supervise the IVA with the care and attention which is necessary.

We started with one company and now been passed to a second I was under the impression that we could get finance for the business as said we have two personal credit card left out and a clause that if business dose not succeed that the overdraft we have would pass over so they new all about the business what we did and how it works so to tell me I can get business credit is wrong although we were having sleepless nights over our personal debt and this has gone now with the iva I feel the stress may be back if we can't fund the business and that we will quickly get into trouble and we both get paid by the business and no business means no wage means none payment of iva and a whole set of new worries is there any thing specific I can ask the company who now deals with us

There is nothing to stop you looking for additional funding for the company, but you will not be able to grant personal guarantees for this without the permission of your Supervisor.

I think that you do need to consult with the firm currently acting for you, with regard to the way forward. Who is the firm you now have supervising the IVA?

If you had any company borrowings personally guaranteed, your IP will almost certainly have notified the lender about the IVA as the value of the guarantee would now be diminished. This would of course impact on the company's ability to borrow so you should have been told of this.

In addition, as Melanie says, many lenders and small businesses will look for personal guarantees going forward and you cannot do this without informing your IP and regardless the details of your IVA would show up on a search.

There is no issue in obtaining credit while in an IVA provided it is with the consent of the supervisor while protecting the creditor. You need to speak to your IP about this and possibly arrange to meet face to face to resolve this. As you say without the company there is no income and the IVAs are doomed to fail.