When Is a Director Held Personally Liable for Company Debts?
While company status often offers protection to a business director, there are certain circumstances when directors may be held personally liable.
While company status often offers protection to a business director, there are certain circumstances when directors may be held personally liable.
Posted by Todd Davison on
Posted by Todd Davison on
Posted by Todd Davison on
We all know that in order to make money, you need to spend money, which is why many SME directors choose to take out loans to help their businesses grow, or when starting on a new venture.
Posted by Todd Davison on
Starting a business is one thing but keeping it going often needs extra cash and while there is a good choice of funding options to consider, as a start-up it is unlikely you will have security in the business to offer the lender. This means you may need to sign a personal guarantee.
Posted by Todd Davison on
Loan notes, promissory notes, bill of exchange; whatever you call them, they’re an integral part of modern business and financial management.
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In a sign of the increasing uptake of personal guarantee backed business loans amongst small business owners, and a corresponding need to mitigate the personal financial risks of these loans, we saw policy numbers increase year on year by 143% in October 2021, making it a record month!
The market sectors where business owners and directors have taken Personal Guarantee Insurance over the past month are predominantly construction, wholesale and professional services.
Keir Cox, our Operations Director, said: “Our data suggests businesses are keen to borrow as we get to the other side of the pandemic but may be facing a limited choice of options from lenders, outside of personal guarantee backed loans. This is even with a strong trading position, as has been the case for the majority of applicants over the past month.
“The increasing demand for personal guarantees from lenders was an issue we foresaw as an outcome of the pandemic but while business owners may have little choice over signing a personal guarantee if they need access to cash, Personal Guarantee Insurance is giving them the confidence to take on a loan without significant risk to their personal assets.”
Posted by Todd Davison on
Start-ups warned to start on the right foot
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For many people wanting to start (or grow) their own small business, a personal guarantee is the only way to successfully secure essential funding, but what is a personal guarantee, and is it a requirement to take our a loan for a new business?
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Ahead of the October budget, we suggest 5 key measures to support the engine room of the economy
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