We use cookies to improve site performance and enhance your user experience. If you'd like to disable cookies on this device, please see our cookie management page.
If you close this message or continue to use this site, you consent to our use of cookies on this devise in accordance with our cookie policy, unless you disable them.

Close
In association with

Home > Training > Adviser Guides

From Adviser Guide: Short-term finance

Q: Do missed payments affect credit rating?

In certain circumstances the borrower’s credit rating can be hit by failure to pay off a short-term loan.

By Emma Ann Hughes | Published Jun 28, 2012 | comments

If a bridging loan goes into default a customer’s credit rating will be affected if their lender is a contributor to a Credit Reference Agency, according to Alan Margolis, head of bridging at United Trust Bank.

If the client does not pay-off a personal asset loan, Paul Aitken, chief executive of Borro, said their credit rating is not affected and there will be no bad debt.

Mr Aitken said: “As the loan is secured against the asset, should there be a surplus if the asset goes to sale; the surplus goes back to the client.

“Should there be a deficit, if would be our responsibility.”

Finished reading all the other articles in this Guide?Bank 1hr of Structured CPD

COMMENT AND REACTION
Most Popular
More on FTAdviser
FTA jobs