Thread: Dealing with private loans

Hi guys,
I've borrowed money from private investors to find my business activities which have been severely affected by the credit crunch. I'm still busting my gut trying to get the business on track but unfortunately one or two lenders have threatened legal action. We signed an agreement stating how much money was invested and the period of the loan but none of the lenders had credit consumer licenses. Don't get me wrong- I'm not looking to get out of paying these monies but would like time to get myself on track and intend to defend any court proceedings.
What defence can I use to set aside any proceedings - idealy I'd like at least 1 year to try and come up with the goods.

Thanx in advance.

If you give someone an undertaking in writing to repay a loan and don't do it, they can sue you for the money. It's them you need to talk to if you are unable to meet repayment as agreed and see if they can extend what you agreed with them.

when you state the lenders did not have consumer creditlicences, do you mean they are loan sharks? I thought you needed a licence to lend money.

Are you sure they are not investors rather than lenders? as investors they take a risk surely. As investors I would think they have the right to withdraw it all depends on the contract.

Remember that investments can go down as well as up.

Thanx for the replies.
Any more?

It's difficult to see on what grounds you would apply for a set aside. We don't know the exact nature of the people who gave you the loans or what paperwork they have to prove they loaned you the money or what the repayment arrangement was. Given that it is private finance, it seems likely they can sue if they have a written undertaking from you to pay within a certain time limit. Grounds for a Set Aside might arise if they litigate outwith the terms that you agreed. It is impossible to tell on the limited information you have given us.