£300,000 PGI approval on £3,000,000 CBILS loan real-time financial trading provider

£3m

Funding Amount 

£300k

Personal Guarantee Insured

£11.2k

Net assets

 

Type of Loan
CBILS Loan

The business provides real-time trading technology platforms and equipment to companies within financial services, capital and commodity markets. Established in 2012, the company has enjoyed impressive growth to date with a net asset position of £11.2m; funded entirely by equity and retention of profits.

As a result of the uncertainty COVID-19 caused in equity capital markets, the business experienced delays in both established and pipeline contracts, which began to impact cash flow. The company applied for a £3,000,000 Coronavirus Business Interruption Loan "CBILS" to assist cash flow. The Directors were, however, put off taking out the CBILS loan due to a £300k joint and several Personal Guarantee required to support the facility.

The Directors opted to utilise Personal Guarantee Insurance to mitigate the potential risk to their personal estates and the Purbeck underwriters worked closely with the Directors to ensure they had a quotation ready for purchase prior to completing on the facility, recognising the resilience of a business that had been trading for 35 years, to give the Director valued peace of mind at a challenging time.

Interesting facts about the case

• Despite a net asset position of £11.2m, a working capital position of £7.2m and no prior debt on the balance sheet, the Directors were still required to sign a Joint & Several Personal Guarantee to support the facility.

• Although the company had experienced a temporary downturn in trade, it was clear that this was a very credible business worthy of support.

• The Directors thought it would be prudent to plan for the worst case scenario by securing Personal Guarantee Insurance irrespective of the success of the business and its strong financial position.

Find out more

www.purbeckinsurance.co.uk

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