Purbeck’s tips for stress testing business finances
Purbeck Insurance Services, provider of the UK’s only Personal Guarantee Insurance solution has welcomed the Job Retention Bonus but fears this will be too little too late for small businesses reaching the end of their cash reserves as the furlough scheme ends in October 2020.
There are many finance options out there for SMEs which need loans to get started or to grow. But how do you qualify for a business loan?
Few SMEs have enough cash within their organisation to self-fund growth. So, for many, the real option is to seek external finance.
It is possible that the personal guarantee you signed is no longer enforceable. Find out your options for challenging personal guarantees to avoid the threat to your personal assets.
It is estimated that over 420,000 small business owners in the UK are acting as personal guarantors for business loans and could be facing the risk of losing their home due to the impact of Covid-19.
The number of small business owners applying for insurance to protect their personal assets if their business fails, has jumped 84% from the first week of February and the volume of applications over the whole month have almost doubled compared to February 2019.
When faced with the prospect of signing a personal guarantee, it’s important that you know all the potential implications should the bank or financial lender look to enforce that guarantee against you, such as in cases of insolvency through liquidation or administration.
Get in touch
For more information or to speak to one of our underwriters contact us today.