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6 Questions to Ask Your Personal Guarantee Insurer

Posted by Todd Davison on Jun 20, 2022 4:08:49 PM

Taking out a business loan is no simple matter. There’s a lot of money on the line, which is why it’s important that your assets are properly protected in the event that your business becomes insolvent.

When signing a personal guarantee in support of the business loan, you can choose to protect yourself by purchasing personal guarantee insurance.

As part of this process, you are well within your rights to make enquiries before you commit to a particular insurer’s policy, but how do you check whether an insurance company is safe and reliable?

Our specialists have put together a series of questions that you can ask your potential personal guarantee insurance provider to ensure that they are the safest and most reliable choice.

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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial finance, #bankruptcy

Government cautioned over new recovery loan scheme

Posted by Todd Davison on Jun 2, 2022 6:00:00 AM

Following news that UK ministers are poised to launch a new £3bn recovery loan scheme that will require business owners to provide personal guarantees, Todd Davison, MD of Purbeck Personal Guarantee Insurance has cautiously welcomed the move but is urging the Government to ensure SMEs are under no illusions about the risks given the current challenges many businesses are facing.

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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial finance, #bankruptcy

When Is a Director Held Personally Liable for Company Debts?

Posted by Todd Davison on May 31, 2022 2:17:58 PM

While company status often offers protection to a business director, there are certain circumstances when directors may be held personally liable.

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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial finance, #bankruptcy

Builders are taking out more personal guarantee backed loans but debt mountain may have passed its peak

Posted by Todd Davison on May 16, 2022 11:33:12 AM
    • -> Personal Guarantee Backed Loan Applications by Small Builders/Contractors up 58%
    • -> Loans for ‘working capital’ up 78%
    • -> Average loan value falls by £23,000

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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial finance, #bankruptcy

Applications for personal guarantee backed small business loans up 50%

Posted by Todd Davison on May 16, 2022 11:30:30 AM
    • Applications for Personal Guarantee Insurance to support business funding rose 50.5% Q1 2022 vs Q1 2021
      In March 2022, the number of applications doubled those received in March 2021. 
      • 35% of finance applications with a personal guarantee attached are for ‘Working Capital’
      • Applications for personal guarantee insurance to support funding for ‘Working Capital’ up 88% vs Q1 2021
      • The average loan rises 22%, from £142,718 in Q1 2021 to £174,104 Q1 2022
      • Finance applications for business development up 69%
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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance, #commercial finance, #bankruptcy

Loan notes explained – a guide to loan notes for businesses

Posted by Todd Davison on Dec 16, 2021 9:54:57 AM

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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Topics: #pgi, #personalguarantee, #personalguaranteeinsurance

What Are The 7 Company Director Responsibilities?

Posted by Todd Davison on Oct 12, 2021 12:03:22 PM

As a company director, you’re legally accountable for your company’s records, accounts and performance, even if you hire someone else to handle certain day-to-day responsibilities (such as an accountant). The information that you’re responsible for sending to Companies House are as follows:

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Topics: #personalguaranteeinsurance

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

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

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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