I own a small business which I supported with Dividend Finance loans, but now it's bankrupt. What'll happen to my loan?

When a business supported by Dividend Finance loans goes bankrupt, the outstanding loan balance is usually due immediately. This includes repaying the remaining loan balance, accrued interest, and late fees.

The consequences vary depending on the type of loan obtained from Dividend Finance. If a personal guarantee was signed, personal assets may be at risk if the business fails to repay the debt. This is because the loan is essentially secured by personal funds. However, if the loan was solely for the business and did not include a personal guarantee, the bankruptcy process typically involves selling business assets to repay creditors such as Dividend Finance, while personal assets are unaffected.

We value your opinion, so feel free to leave a comment with your thoughts.