News

This thematic blog is written in response to recent regulatory changes, specifically the Insurance Distribution Directive ("IDD"). In our view, these changes are welcomed.

UK Finance, the banking industry trade body, has held discussions with leading business group to discuss the provision of emergency Brexit advice to small and medium sized businesses. Part of their mission is to reassure the SME community that banks will retain the capacity to lend and not tighten the availability of credit. They also plan to outline alternative finance options available to SMEs. 

We are delighted to announce our partnership with FSB Insurance Service

It’s often the case of David v Goliath for many small businesses when it comes to dealing with large firms and their supplier payment cycles. 

Is the economic future really as dire as people make out? 

In January 2018, the Financial Conduct Authority ("FCA") opened a consultation on the role of the Financial Ombudsman Service (“FOS”) and whether its services should be extended to incorporate more SMEs and personal guarantors.

There’s no let-up in lender demand for personal guarantees as security for small business loans.  So faced with this Hobson’s choice and a future that’s predictably uncertain, what are the pros and cons of signing that guarantee? 

As a company Director one benefit of your company’s limited liability status is that your personal assets are normally protected from any claim the company creditors may have against the company.  This protection does not exist for sole traders or partnerships. 

Your personal assets are yours and the company creditors have no claim against you, just the company.

So why would you ever give up that protection?  

When considering your business finance options as a company Director, you might be asked to provide a personal guarantee as an assurance for a business loan or another source of financing on credit. This puts you into a direct relationship with the lender, who could legitimately pursue you personally if your company becomes insolvent. But is this a risk that you think is worth taking?