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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

What types of insurance should you consider whilst running a business?

Posted by Todd Davison on May 19, 2021 11:09:43 AM

When it comes to business insurance, owners are typically well informed with products such as employers' liability insurance, public liability insurance and business interruption insurance. But if you have ambitions to grow your business, there are other types of insurance which should be in your thinking.

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Topics: #pgi, #personalguaranteeinsurance, Insurance

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