2024 Economic Storm: Corporate Insolvencies Reach 30-Year High

In a sobering revelation, the latest data from the Insolvency Service  paints a grim picture of the economic landscape: corporate insolvencies have surged to a level unseen in three decades. 2023 marked the zenith of this alarming trend, with businesses across all sectors grappling with financial turmoil. Among the worst-hit industries are construction, retail, and […]

Understanding Personal Guarantees on Business Loans: Triggers and Implications

Businesses often seek financial support through loans to fuel growth, navigate challenges, or seize opportunities. In many cases, lenders may require additional reassurance in the form of a personal guarantee, especially when dealing with small businesses. A personal guarantee adds an extra layer of security for lenders, but it’s essential for business owners to understand […]

Demystifying Bailiff Powers: Understanding the Authority and Limitations

Bailiffs play a crucial role in enforcing court orders and recovering debts on behalf of creditors in the UK. Understanding their powers is essential for both creditors and debtors alike. This article delves into the specifics of what powers bailiffs possess, the legal frameworks that govern their actions, and the rights individuals have when dealing […]

When doing the right thing as a company director can impact your personal financial position

Running a company comes with various responsibilities and legal obligations for directors to ensure the proper functioning of the business and the protection of interests, including creditors. While prioritising ethical and lawful behaviour is crucial, it’s important to recognise that some decisions made in the best interest of the company might have financial implications for […]

Top Tips for Company Directors facing a Personal Guarantee Claim

• Seek advice early – As soon as you receive a demand against you then get some advice. Ignoring it or delaying will not make it go away and early advice is crucial to understand your obligations/liabilities / legal position and potential courses of action. • Review the personal guarantee paperwork – Thoroughly review the […]

Do you know the risks associated with signing a personal guarantee?

Securing financing for a business is a common challenge that company directors face, and one avenue often pursued is obtaining a business loan. However, many lenders require a personal guarantee as a condition for approval. While this may seem like a straightforward commitment, it comes with inherent risks that company directors should carefully consider before […]

Case study – Directors Loan Account Claim

We don’t just help with personal guarantee claims. We frequently help directors who have received a claim against them to repay an outstanding director’s loan account. During liquidation an overdrawn director’s loan account is an asset of the company and the director is personally responsible for repaying it. The duty of the liquidator is to […]

What is a Personal Guarantee?

A personal guarantee is an agreement between a company director/business owner and a lender that if the business cannot repay the loan, you will personally repay the amount outstanding. So essentially the company director becomes a personal guarantor for the business loan. Most lenders require a personal guarantee as a condition of the lending. It […]

Could I lose my family home if my business goes into liquidation?

Your home usually isn’t at risk if your company goes into liquidation, it is a personal asset and belongs to you, not the company. However, certain instances exist where your family home could be at risk and not protected by the corporate veil of limited liability. Personal Guarantee – If you guaranteed a business loan […]

Why do Banks insist on Personal Guarantees?

Banks often insist on personal guarantees as a way to mitigate the risk associated with lending money to small businesses. Personal guarantees provide the bank with an additional form of security in case the primary repayment source—such as business assets or collateral—proves insufficient to cover the debt. Here are a few reasons why banks insist […]