Pre-insolvency advice GYM OWNERS – Coronavirus Debt Exposure Help

With the global pandemic of Coronavirus / COVID-19 hitting all businesses across the world, we have seen Independent Gyms hit the hardest. Whilst government help is welcomed, we are finding that grants are means-tested and only lasting a few months while government backed loans come with an element of risk. Coronavirus Bank loans such as CBILS or Bounce-back loans are no different. The team at Bell & Company can help Gym owners across the United Kingdom and Republic of Ireland, who find themselves in financial difficulty for one reason or another.

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GYM OWNERS – Coronavirus Debt Exposure Help

Landlords are still demanding rent from Gyms despite them being shut. Gym owners, there is help available when it comes to Coronavirus Debt Exposure.

If your Gym is struggling and the property lease is in a personal name or is supported by personal guarantees – then it is vital to engage and seek advice. 

Whilst UK businesses wrestle with the uncertainty of the Furlough scheme and Coronavirus Business Interruption Loan Scheme (CBILS), yet to showcase how it can help SME’s. The issues of Full Repairing and Insuring (FRI) property leases comes to the forefront for Gym owners across the UK.

    • Full Repairing and Insuring (FRI) property leases are not fit for purpose. As such is now affecting all businesses including gyms.
    • Company Voluntary Arrangements are deemed to be an event of insolvency. Most leases give the landlord the opportunity of ‘triggering’ any demand on the tenant and/or Personal Guarantee in the event of any form of insolvency.

We hear regularly of issues with Full Repairing and Insuring (FRI) property leases. They are ‘old fashioned’ in today’s modern business world and usually very onerous.

FRI leases are burdensome and not fit for purpose in today’s world tenancy agreements.

Most commercial tenancies are based on this form of lease.

These are at best inflexible. They are not fit for purpose in today’s ever-changing, fast-moving commercial environment we exist in.

With the backdrop of Coronavirus creates a ‘perfect storm’ for property leaseholders of gyms.

Our team has a real depth of legal and financial experience in dealing with personal guarantees, so we can mediate effectively with your creditors with the aim to reach the best possible outcome for you in relation to Coronavirus Debt Exposure and general debt issues arising from cashflow and over-exposure.

We don’t aim to capitalise on the current Coronavirus crisis but we are seeing growth in enquiries from gym and leisure owners.

The reality is most of these businesses are renting or leasing properties and facing immediate financial pressures. But that’s only part of the story. If we are to take current advice on social distancing and science-based evidence on how coronavirus spreads you will understand that even if lock-down is lifted soon the nature of gym businesses could mean people being limited inside gyms going forward and constant challenges in running leisure facilities if the advice becomes a permanent feature. This could mean less members and pressure on cashflow at a time when FRI leases and any loan designed to cover costs currently will need repaid.

As independent debt advisors we realise that coronavirus is a unique event that was unforeseen when you set up your business. That said, loans and business help follow a familiar pattern and we have identified pressure points for gym and leisure industries that could leave the owners of these businesses under severe financial stress.

Personal finances will be under extreme pressure and SME owners, even those seeking self-employment and small limited company help need to understand the help and advice will change the longer this crisis goes on.

All business owners across the United Kingdom & Ireland now face the prospect of losing everything they worked hard for because of the Coronavirus pandemic. We understand this is a worrying and uncertain time for you, that’s why we’re here to alleviate your financial issues. Our expert team will provide you with the best advice on Coronavirus business debt help and guidance on how you can manage issues such as Cash Flow, HMRC Debts, FRI Leases and debt with trade creditors.

‘As we always say, know the worst and then achieve the best from there’

If you face this type of issue talk to us now and call today for a free consultation.

Alternatively, submit the request a callback form and one of our advisors will be in contact as soon as possible.

Tick iconYou can trust Bell & Company

1. We will see every personal guarantee case through until the end,
2. We are experienced in negotiating with creditors,
3. We have helped many Gyms with FRI Leases and attached personal guarantees,
4. We are transparent from the start with our costs, your first consultation is free

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Free Initial Case Review

From the outset, we establish clear bottom lines with our clients, so we understand what their priorities are and what must be protected. We then create a strategy to navigate the way out of corporate and personal debt with impartial advice and rigorous action.

Specialist, Impartial Advice

There are some very sharp minds at Bell & Company, so we’re extremely adept at finding unconventional strategies and solutions to resolve our clients’ debt dilemmas. This means that when you’re with us, you can be assured that we’re working for your best possible outcome.

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