From Adviser Guide: Short-term finance
Q: Can the asset be sold?
As with all secured loans, if ultimately the borrower cannot repay the loan then the lender would be entitled to repossess and sell the security property.
At the end of the loan term, Paul Aitken, chief executive of Borro, said if the client hasn’t paid off the interest to allow them to renew his staff actively worked with the client to understand their financial position.
Mr Aitken said: “We do our utmost to enable the client the opportunity to repay. However, if it is clear that the client cannot or does not want to redeem, we dispose of the asset through auction.
“Any surplus after outstanding interest, principle and admin costs such as auction fees, are returned to the client. Any deficit is absorbed by Borro.”