Posts Tagged ‘liquidation’

Business Planning During Coronavirus Pandemic


Further to my video this morning – knowingly undertaken in the dark (my face for radio etc), I commented that we would give a quick insight into how we are trying to plan in the most uncertain of times = Covid-19. Our attitude is stay agile and get business planning during Coronavirus.

We as a management group are meeting every day via 3CX video conferencing at 7.30am, to keep up to speed on where we are as a business in today’s continually changing landscape.

Our current plan and daily review takes the following forms:

  1. Maximising Cash Flow – yes stating the bleeding obvious, but as my senior partner used to say ‘cash flow is the 8th wonder of the world’.

2. Review our marketing daily. Weekly and monthly plans have gone out the window. We have to be so sure we are on point with our message, especially when you of the type think the work we undertake, we will not be ghoulish in our messages.

Yes, we’re going into recession – but we fully respect all entrepreneurs struggling out there due to Covid-19. 

3. Being abreast of the facts at all times. Don’t look at all news feeds or it will do for you. I thoroughly recommend the FT and they will have a subscription deal on at the moment for sure. The FT continues to always offer succinct reliable reporting, such as Pilita Clark’s excellent piece from yesterday ‘No room for bullshit in this time of coronavirus’.

James Bell, Noel O’Hare & Angela Thorpe sign up please to any entry-level for the FT.

Also, a man who speaks a lot of sense is Luke Johnson who writes in The Sunday Times and is on twitter.

4. Working on different timeline and plans.

We have a one week, two week and five-week plan here during Covid-19. As things evolve/change we will look at things accordingly. As I said in the video piece I need this for my wee brain but we need to plan at least for some light at the end of the tunnel, as day to day existence is no good. We all need purpose here.

5. Ensure we are smarter in our work.

Lockdown gives us more opportunities to consider options, tactics and approached on cases.

6. Making sure and it’s cliché but…think outside the box.

For example, we have today developed another way to attack our work in Spain merely by taking some time out to consider the detail of what we do.

It will be a game-changer – hopefully.

7. Ensuring our team is motivated on a daily basis.

Remote working and managing bring their own challenges.

We have the benefit of an established team here. If you are alone or not able to talk to a peer or someone else conversant with the pressure so business before the COVID-19 landed. It’s tough out there as we all know so keep talking.

Tomorrow we are going to relay a few types of stances we should approach when faced with financial adversity. Business planning during Coronavirus is critically important as the regulations from the powers that be will change rapidly. Stay agile, stay on top.

As ever good luck and keep fighting

Vulture Fund Negotiations

Liability of £120,000 with secured assets worth £195,000 sold to ‘vulture fund’ settled for £38,000, vulture fund negotiations took place. 

Our client’s liability with a major banking institution which was sold to a ‘vulture fund’ with a secured asset attached worth £195,000. This case involved vulture fund negotiations.

The client could not bear the thought of losing his family home.

He tried to ignore the situation, however:

Giving notice to the client, he sought independent advice and this is where Bell & Company came in.

With our strong legal & financial backgrounds, our team of strategists were quick to act and thus halted immediate action from the solicitors.

With continued correspondence and negotiations with both the Bank and Solicitors.

We successfully managed to stop any further legal action and propose a full and final settlement.

With our steadfastness approach to getting the best result for our client with vulture fund negotiations.

We were able to come to an agreement with the lender and settle the debt for £38,000 in a full and final settlement.

Not only this but the client was able to protect his home and exit the scenario with his liability cleared.

Total Savings of £82,000 achieved!

Your steps to a debt-free future

Can I be considered personally liable or be pursued for the Debts of my Business?

A primary question that many will ask as their Business beings to fail is, “Can I be considered personally liable or be pursued for my  business debts?”

Many people in business will operate as an individual, Sole Trader or Partnership.
If this has been your chosen trading style, it is most likely that any borrowings from Lenders to support your Business will have been issued either in your personal name or that of the Partnership. That being the case, you will no benefit from limited liability status and, resultantly, are liable to be pursued for the full amount of the monies borrowed.

Where a secured business facility that has been issued to an individual(s) Partnership debt falls into difficulty, the subject Lender will work through the sale of any security held in order to seek to reduce the balance owing. Once this has been completed however, the individual(s) are fully exposed and can be pursued for the crystallised shortfall, up to and including Bankruptcy in which case personal assets can be at risk.

It is imperative that anyone in this position prepares themselves pro-actively in order to maximise protection as otherwise, home and other assets of importance could be materially exposed.

If you operate as a Limited Company, then it is likely that any business debt will be taken out in the Company name, i.e. an entirely separate entity from the individuals operating the business

In the event that you have signed a Personal Guarantee(s) on any facility obtained for the benefit of the Company, for example on a business loan or property lease, and the Company is rendered incapable of meetings its obligations under the terms of the agreement then you, as a Guarantor, will be personally responsible.
If you don’t meet the payment schedule/terms and conditions of the agreement, then the Lender, whether a Bank, Landlord or other, will pursue you personally for the debt and will take whatever action required to recover the full amount due under the Personal Guarantee.


If there is an overdrawn Directors’ Loan Account when a Company goes into liquidation, then the Directors will be held personally liable for repaying that loan. The IP appointed on the liquidation will demand and pursue repayment on behalf of the Creditors.

The IP is fully entitled to take legal action against the Director(s) personally which could, once again, lead to Bankruptcy if repayment cannot be facilitated.

Having an overdrawn Director’s Loan Account in a liquidation situation can also lead to personal Revenue liabilities and investigation if over a certain level.


The expert team of Corporate Debt Strategists here at Bell & Company can provide Impartial and tailored advice to suit your needs. Contact us today for a free consultation on 02895 217 373 or contact us  where we can quickly review your case and point out your options.