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Q: Do missed payments affect credit rating?

This article is part of
Guide to short-term finance

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.”