2 min read
Definition
Repossession is a secured lender exercising its right to take back the charged asset — vehicle, equipment or property — when the borrower defaults, then selling it to recover the debt.
In plain terms
It only applies to assets pledged as security. Unsecured lenders cannot repossess; they must pursue the debt through other means.
Why it matters for your company
Repossession is avoidable through early forbearance talks. Credicorp’s core business loans are unsecured with no personal guarantee, so your assets are not on the line. See receiver.
Related reading
Secured creditor
A secured creditor holds a charge over specific assets, so it ranks near the front of the payment queue and…
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Receiver
A receiver is appointed by a secured lender to take and sell the specific assets it holds security over —…
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Forbearance plan
A forbearance plan is a temporary easing of terms — a payment holiday, reduced instalments or extended term —…
Read →Default
Default is when a borrower fails to meet the terms of a loan — most often by missing repayments, but also by…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.