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.
Small Businesses Face CBILS Shock as Lenders Come Calling
Topics: #personalguarantee, #Directors, #CBILS
54% of SMEs that need cash to survive banking on Recovery Loan Scheme
Credit cards and overdrafts prove to be lifelines for SMEs in Pandemic
- -> 54% of SMEs need to secure new finance in 2021, of these, 54% will apply for a loan through the Recovery Loan Scheme
- -> 34% think the Government hasn’t done enough to support small businesses
- -> 43% saw a fall of more than 25% in business income in 2020
Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial guarantee, #commercial finance, #bankruptcy
58% of SMEs in need could be excluded from Recovery Loan Scheme
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.
Small businesses urged to heed the warning signs of insolvency
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
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CBILS loans worth £1.22bn revealed to have Personal Guarantee attached, average loan 300% more than UK house value at £766,000:
- -> Freedom of Information request exposes high personal risk to SME owners
- -> Average loan value £766,000
- SME business owners could be on the hook for over £150,000 if their business fails
- -> 39% of SMEs not aware of Personal Guarantee risks[i]
- -> Concerns over size of loan repayments and awareness of personal guarantee risks
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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial finance, #bankruptcy
Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial finance, #bankruptcy
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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
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Applications for Personal Guarantee Insurance double[i] in September 2020 as lenders pull back from emergency loans
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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial finance
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