Can you have a business overdraft when in an IVA ?

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jon534
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by jon534 » Fri Mar 03, 2017 6:25 pm
Can you have a business overdraft when in an IVA? I have a business with 2 co-directors and there could be a couple of months where an overdraft would be helpful. Is this possible if it is a ltd company and not a personal overdraft?
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Foggy
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by Foggy » Fri Mar 03, 2017 6:43 pm
The company is a body corporate and responsible for it's own debts. However, the Directors are usually credit searched when the company applies for a credit line --- you will, most likely, be refused the overdraft.
redboxtree
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by redboxtree » Sat Mar 04, 2017 8:24 am
As Foggy says - unfortunately your current credit history will have a negative impact on the business until the IVA no longer shows in credit searches.

To get an overdraft you would probably need to step down as a director and become an employee of the company for a while to allow the other 2 directors to make an application.
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Michael Peoples
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by Michael Peoples » Mon Mar 06, 2017 8:54 am
If the company has an overdraft not guaranteed by the directors then this is no issue. However if the bank does seek personal guarantees then you will almost certainly fail the credit check even if the IP allows you to sign.
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