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.
Topics: #personalguarantee, #Directors, #CBILS
Credit cards and overdrafts prove to be lifelines for SMEs in Pandemic
Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial guarantee, #commercial finance, #bankruptcy
Funding through Personal Guarantee backed loans could be only option.
Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial guarantee, #commercial finance, #bankruptcy
Borrowing hit record levels in 2020 with almost half of the UK’s small and medium-sized businesses seeking out financial support – more than three times the level of the previous year – amid the coronavirus pandemic.
Interest on average Personal Guarantee backed loan through CBILS could reach £327,000.
The Office of Budget Responsibility has predicted a default rate of 40.4% on BBL and CBIL finance to SMEs, with £27.2 billion of loans expected to be written off[i]. Purbeck Personal Guarantee Insurance, provider of the UK’s only Personal Guarantee Insurance to SME business owners and directors, is urging the 59%[ii] of businesses revealed to have borrowed more than 20% of their turnover, to calculate their repayments and heed the insolvency warning signs.
Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial guarantee, #commercial finance, #bankruptcy
CBILS loans worth £1.22bn revealed to have Personal Guarantee attached, average loan 300% more than UK house value at £766,000:
Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial finance, #bankruptcy
Small business owners facing failure also face increased risk of losing their home.
Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial finance, #bankruptcy
The value of personal guarantee backed business loans to SMEs during the pandemic has risen on average by 45% according to analysis by Purbeck Insurance Services, provider of the UK’s only Personal Guarantee Insurance.
Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial finance, #bankruptcy
No company director wants to have to face up to the prospect of their business becoming insolvent. But directors have a duty to act in a certain way, in accordance with the relevant legislation, should their company find itself in a position where it can no longer pay its debts.
Topics: #personalguarantee, #personalguaranteeinsurance, #Directors, Insurance
Applications for Personal Guarantee Insurance double[i] in September 2020 as lenders pull back from emergency loans
Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial finance
For more information or to speak to one of our underwriters contact us today.
Purbeck Insurance Services is a trading name of Purbeck UK Limited which is a company registered in England and Wales under company number 10345620 and has its registered office at 20 - 22 Wenlock Road, London, N1 7GU Purbeck UK Limited is authorised and regulated by the Financial Conduct Authority. Firm permissions can be obtained from the FCA register. Purbeck UK Limited is a Managing General Agent and has binding authority to enter into and administer contracts of insurance on behalf of Markel International Insurance Company Limited.
