Business loan

Builder banned after taking out £19,000 business loan for personal use

A builder has been banned from running businesses after pocketing £19,000 from an emergency loan.

Jack Beaman, 28, has applied for a £25,000 government-backed repayment loan (BBL) for his company Goose Group Limited (GGL), with the money only to be used for the benefit of the business.

But Beaman, of Green Drive, Poulton-le-Flyde, used just £5,500 to pay business creditors and used £19,300 for personal expenses. This included around £800 to a telephone company, cash withdrawals of £7,000 and online shopping of around £2,500.

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The company claimed the loan in May 2020, and Beaman used most of that amount for personal use over the next six months.

He placed the company in liquidation in March 2021 and details of the money misused soon emerged.

The investigation revealed his last accounts filed at Companies House for the year ending November 2019 had an insolvent balance sheet of £76.

The BBL loan was deposited into the company’s account in May 2020 as the government tried to help businesses struggling with the pandemic.

With most of that money misused, GGL went into liquidation less than a year later, and Beaman told liquidators the loan funds were “used for personal payments instead of salary.”

An insolvency service investigation said: “In the report to creditors dated March 09, 2021, it said the majority of the funds were used to pay suppliers and contractors to complete work that had been delayed for the lockdown in March 2020. The report also states that GGL ceased trading on August 31, 2020, however, £6,391.74 was taken from the bank account after that date.

“At the date of liquidation, liabilities amounted to £29,828, of which £4,621 were trade creditors and expenses and £25,000 remained unpaid to the Bank in relation to BBL.”

A separate report filed at Companies House explained that Beaman was unable to repay the money.

It says: ‘During the joint liquidators’ investigations into the affairs of the company, the director was identified as owing the company the amount of £24,238.43 in respect of an overdrawn loan account (after set-off of the amount of £3 £000 which the director personally paid in the liquidation in respect of state of affairs costs).

“Further inquiries were made into the director’s personal financial situation to determine if he was able to repay the loan account. After a thorough review of his income and expenses, statement of assets and bank statements, and a 10PN search by HM Land Registry, it was determined that the manager had no means of repaying the loan account to discovered as he was out of work and has no property in his name. Therefore, no achievement could be made in this regard.

“My investigations as liquidator have revealed no other undisclosed assets.”

Beaman was banned from running a business for six years.

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