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Pandemic inspired entrepreneurs need to get educated on personal guarantees

Posted by Todd Davison on Sep 10, 2021 11:11:04 AM

Personal Guarantee backed loans risk being dismissed in favour of credit cards and overdrafts

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Debt factoring: Advantages and disadvantages

Posted by Todd Davison on Aug 26, 2021 1:29:21 PM

You can be doing lots of business, but still be relatively cash poor. The late payment of invoices makes cash flow a real issue for SMEs who, having done the work and paid for supplies, are left to wait to receive the revenues for the labour.

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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance

Rise in Business Creation Sparks Finance Stacking Fears

Posted by Todd Davison on Aug 4, 2021 4:30:11 PM
  • -  70% of start-ups seek new finance in 2021
  • -  Savvy entrepreneurs protect £35m in loans through personal guarantee       insurance
  •  

July 2021: As ONS data shows an unprecedented rise in new company registrations in Q1 2021 versus Q1 2020[i] continuing a trend seen in 2020 - ‘the year of the start-up’[ii] - our latest survey has revealed that 70% of start-ups[iii] have secured or are planning to secure finance in 2021 to help support cashflow. Amongst these businesses, 37% of the owners or directors surveyed have already signed Personal Guarantees in 2020 to access finance, raising fears of loan stacking and multiple personal guarantees signed by one individual.

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What happens when a company is dissolved?

Posted by Todd Davison on Jul 14, 2021 10:09:16 AM

Directors may choose to voluntarily dissolve a business for a range of reasons, such as the retirement of the owner, the end of the useful life of the company from a legal perspective, or simply because it proved to be an unsuccessful venture. It’s the simplest and most cost-effective way to close a private limited company – but it isn’t always as straightforward as many directors hope it would be.

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Topics: #personalguaranteeinsurance

Battered and bruised businesses on the hook for £2.1bn in Personal Guarantee Backed Loans under CBILS

Posted by Todd Davison on Jul 9, 2021 4:28:52 PM

July 2021: The final COVID loans data released by the Government this week[i] failed to provide clarity on the total value of loans which required the business owner or director to sign a Personal Guarantee, putting their personal assets at risk if the business fails. Based on a Freedom of Information[ii] request made by our MD, it is estimated that 8% of the value of all the CBILS loans advanced required a personal guarantee. This equates to £2.1bn in loans taken over the past year.

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Back from the brink – 46% of SMEs contemplated closure in 2020, now it’s just 1%

Posted by Todd Davison on Jul 1, 2021 1:36:01 PM

Fear of further lockdowns is number one worry for SMEs but 75% are optimistic about the year ahead

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What happens if a limited company goes bust?

Posted by Todd Davison on Jun 21, 2021 1:51:20 PM

No business, big or small, has been able to escape the impact of the Covid-19 pandemic – with over a year of restrictions, lockdowns and uncertainty taking its toll.

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Small Businesses Face CBILS Shock as Lenders Come Calling

Posted by Todd Davison on Jun 16, 2021 11:24:13 AM

June 2021: As many businesses face the financial impact of four more weeks before pandemic restrictions lift, small business owners who have become personal guarantors for CBILS loans over £250,000 are being warned that lenders will come to them first, if they default on the loan – not the Government.

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Topics: #personalguarantee, #Directors, #CBILS

1 in 3 Small Business Owners became Personal Guarantors in 2020 - 22% haven't told their spouse or partner

Posted by Todd Davison on Jun 7, 2021 3:54:10 PM

June 2021: The personal financial risk of becoming a personal guarantor for a business loan has become a fact of life for 1 in 3 small business owners but it’s also a secret for 1 in 5. This is according to a new survey of 1000 SME business owners and directors[i] by Purbeck Personal Guarantee Insurance, provider of the UK’s only Personal Guarantee Insurance.

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Topics: #pgi, #commercial finance, #SMEs

Personal Guarantee backed CBILS loans surpassed £2 billion

Posted by Todd Davison on May 25, 2021 3:04:14 PM

-> Freedom of Information request exposes high personal risk to over 2,300 business owners

-> Average size of a Personal Guarantee backed business loan at the end of the Coronavirus Business Interruption Loan Scheme "CBILS" was £774k.

-> In total, £2.1 billion of CBILS loans were supported by Personal Guarantees.

-> SME business owners could be on the line for over £154k if their business fails.

-> Many SMEs will have ‘Topped Out’ on CBILS, preventing access to the Recovery Loan Scheme.


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Topics: #pgi, #personalguaranteeinsurance, Insurance

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