Posts Tagged ‘commercial finance’

A Guide to Director’s Personal Guarantees

 

A Guide to Director’s Personal Guarantees

A Guide to Director’s Personal Guarantees

What is a personal guarantee? Why would I need one?

At the height of the business boom, banks were often very happy to provide loans to companies. They often required the directors of these businesses to sign an agreement, stating that in case of the company being unable to repay these loans, the signer, or guarantor, would be personally responsible for the repayment.

Although these agreements are not a problem as long as the business is repaying its loans under the agreements agreed by the lender, they have become more of an issue since the 2008 financial crash. Suddenly, companies have found themselves in difficulty, and lenders are entitled to pursue bankruptcy against the guarantor if they cannot repay the terms agreed when the original agreement was signed.

Limited company vs. sole traders/partnerships

Personal guarantees were generally only signed by directors of limited companies. Sole traders or those who work in a business partnership will often have been issued loans in their names.

Both kinds of loans put individuals at risk of losing assets or even being declared bankrupt if repayment fails.

What if I can’t pay?

If you signed a personal guarantee for your limited company and both the company and you fail to keep up with repayments, your lenders will pursue you to recover the outstanding debt. If you go straight to an Insolvency Practitioner, you will find they are legally obligated to try and get the best deal possible for your lenders.

Even if your bank account is overdrawn, your creditors can take legal action against you, and you could even find yourself under investigation.

What do I do next?

There are always options. You don’t have to face the stress and uncertainty of being liable for repayments by yourself. Bell & Company, as pre-insolvency consultants, specialise in helping people like you. If your loan has been sold off by your original lenders to a so-called ‘vulture’ fund who aggressively pursue debt repayment, Bell & Company’s involvement can help take some pressure and strain off your shoulders.

Bell & Company are fully informed of the most effective methods in order to get you the best possible outcome. They have numerous success stories, helping clients who were being pursued aggressively by lenders and creditors start fresh, without the threat of further repayments hanging over their head.

Contact Bell & Company here to see what they can do for you.

Pressure from a pending loan sale?

Pressure from a pending loan sale?

Are you under pressure from a pending loan sale?

As will know, there has been a multitude of bank loan sales of late to a variety of recovery companies and vulture funds. This includes Ulster Banks loan sales to Cerberus and Cabot amongst many others.

Initial Correspondence 

When a borrower initially receives correspondence to notify them of a pending sale, they are usually provided with several options in order to prevent the sale however most involve full repayment. Which is simply not feasible for the majority to receive written indication. Such a loan sale can be distressing for any person or business. Particularly, where they have been banking with the same institution for many years.

Be Proactive

Many of these funds or companies can be commercial and will make pragmatic decisions so long as the correct approach, attitude and presentation is adopted. We have recently engaged in a negotiation resulting in settlement at in and around 1%, which was a phenomenal outcome for our client.

It is essential that a proactive approach is adopted to avail of this opportunity.
In the event that an individual/business does not engage or communicate and instead, chooses to ignore the matter, it is highly likely that the fund will become aggressive and choose to litigate.

Be Forthcoming

You will have seen it publicised in the media of late. Mass actions are being taken by certain vulture funds resulting in a multitude of borrowers receiving a summons and inevitably, judgment will be sought. This can be avoided by being forthcoming with regards communication, submissions and proposals.

Bell & Co have first-hand experience of the opposite response from these funds. We have witnessed directly how making the correct approach can result most favourably for the borrower in terms of settlement and savings.

If you or someone you know have received an indication that your loans will be entered a loan sale, we would urge you to be proactive in taking advice and seeking to reach conclusion allowing all then to move forward.

You can do so by calling my colleague Karen Campbell now on 0330 159 5820

PERSONAL GUARANTEES – PERSONAL EXPOSURE FOR BUSINESS DEBT

POST HOLIDAYS – BACK TO IT AND RECENT SETTLEMENTS

I hope you all enjoyed the extended weekend over 12th July and managed to have some relaxation time. Typically at Bell & Company headquarters we see a slowdown in business for the week with the phones being quiet. This period though gives our advisors in both the Corporate and Resolution teams’ time to work together to present proposals to lenders. As a result we have seen some excellent settlements for our clients.

Corporate

A client had a debt with an Irish Bank following a failed development project. The outstanding balance was in excess of £750,000 and was settled on a Full & Final Basis for 5%.

Resolution

The resolution team recently settled two cases with an eminent Building Society in the UK.

Following the sales of Negative Equity properties the outstanding shortfall balance owed was £425,000 and following protracted negotiations this was settled on a Full and Final basis for 12%.

Our advisors continue to work on cases with a variety of lenders and having developed experience and relationships we know the protocols certain Banks work under and what realistically can be achieved. All lenders are different and tailor our advice to suit your circumstances and fully explain the process from beginning to end. Often there will be changes along the way and Banks change their protocol but we constantly adapt to the environment we work in to get the best results for our clients.

Why not arrange a free initial consultation to discuss your circumstances where you will be shown documentary evidence of the results we have achieved. Please call the office on 02890 517 047 and liaise with Karen or John.

Keeping it short and sweet today as we have a busy week here at Bell & Company hq. Please keep in touch via social media.

Terry Bell – Director.

Can I Preserve my Credit Rating?

Your Credit Report and Rating are very important. Many underestimate the value of a good credit rating and the positive impact it can have on your life.

It is crucial that you understand what a credit rating can achieve for you. Any substantial financial decision you or your family make will likely require your credit to be scrutinised. Many new clients come to us having listened to terrible advice to stop payments to creditors which has already damaged their credit rating without being advised this would be the result.

Bell & Company ensure to give every client the correct advice on the effects any route they take will have on their credit rating. Sometimes, it is not possible to protect it but it is possible to put a timescale on when the score may begin to recover and give instructions on how to speed up the recovery process. Other scenarios can see it adversely effected but not completely ruined and in some cases it may be possible, providing you follow advice carefully, to not damage your credit file.

Some clients are initially concerned when Bell & Company request a credit report during an initial meeting, many feel perhaps it is an invasion of their privacy and circumstances given we may have only met for the first time. We stress that a Credit Report gives our advisors a fantastic overview of your circumstances and ensures that we miss nothing before proceeding with any case. We can also point out changes in your credit report and advise how it would be effected by the processes and options we discuss in the meeting.

Bell& Company recommend you constantly review your credit file, even applying for a Phone Contract can have an effect. If you are new to this why not sign up to www.creditexpert.co.uk for a 30 free day trial. Other sites provide online credit reports include:

www.checkmyfile.com

www.equifax.co.uk

www.callcredit.co.uk/consumer-solutions/your-credit-report

In Republic of Ireland we have utilised the postal service provided by the Irish Credit Bureau. These can be purchased at www.icb.ie and we also understand they now have an online version available.

As we stated, any of the services Bell & Company offer could have an effect on your credit file and hence why we raise the issue, we pride ourselves in providing independent advice and reviewing any client’s credit file falls into this remit.

Should you wish to discuss any debt related matter then please call the office on 02890 517047 to have a chat with one of our trained advisors and to arrange a free initial consultation. Be sure to follow or like Bell & Company on your preferred social media platform for latest updates.

Terry Bell – Director

BELL & COMPANY IN THE PRESS!

Check out our ‘Real Issues in today’s Financial World Seminar’ review published in this months  Tatler July where Bell & Company representatives spoke on their successes in obtaining Commercial Finance. If you have any queries in relation to commercial finance contact us today!  Make sure to keep an eye out for details on our next seminar which will be available soon!!