Here is another case in which Complex Law were prepared to step in, where others feared to tread, and battle for someone who had got into legal difficulties with his Company’s Bounce Back Loan.
Proving that no matter how bad things may look, you need to keep the faith and be prepared to face things head on.
Overview of the Case
Client J, in his role at as a Director, was instrumental in the submission of an application for a government-backed Bounce Back Loan (BBL) that significantly overstated the company’s turnover.
Client J presented a turnover of £251,000, on which basis he successfully applied for a BBL of £40,000.
This figure far exceeded the companies legitimate entitlement under the terms of the BBL scheme, which allowed a company to borrow up to 25% of its turnover from the year 2019.
Given that the companies accounts for the year ending 2019 recorded a turnover of £101,800, this would mean they were entitled to a maximum loan of £25,450.
The £40,000 was withdrawn from the business on the same day and our client had used the fund to purchase a new vehicle, which would be used for personal use.
Moreover, a closer examination of the companies bank statements from the calendar year, revealed credits totalling £60,010, which would have made the companies entitlement on that basis to be £15,002, which shows the company facilitated the application for a loan that was £24,998 more than what they were legally allowed.
As of the date of liquidation, the total amount was outstanding. This shows that Client J and the company had showed a severe breach of trust and non-compliance set forth.
Our client found themselves being pursued for financial penalties and bans which reflected the seriousness of their misconduct.
Client J reached out to a representative of Complex Law at the earliest opportunity and was frank with the position and what had happened at the time, this allowed Complex Law to formulate a plan and start to negotiate on behalf of Client J to attain a more favourable outcome.
Client J was a Director of a number of trading companies and by their own admission would have faced certain bankruptcy if they were banned from being a Company Director.
With all the facts in front of us, Complex Law were able to fiercely defend our clients position and negotiate a settlement agreement with over a 40% reduction in the amount being sort and our client not being banned.
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