Alternative lenders – is it a wise move?
6 November 2019: The BRI Business Recovery and Insolvency offices are experiencing a marked increase in queries from companies who have obtained loans from alternative lenders, taken out to assist them with their short term cash-flow issues and also for the payment of liabilities to HMRC that have built up over time. These funds are generally sought by companies when traditional bank loans are unavailable. The majority of the time no corporate security, such as a debenture, is obtained with the onus being on a personal guarantee being provided by the company director(s).
It is easy to see why, when a company is in financial difficulty, an application on-line with the promise of funds with 24 hours is appealing. However, this “quick fix” can come at a personal cost when, some months later, repayments are unable to be met and demand is made on the guarantee.
If you are a director of a company that is experiencing financial difficulty and contemplating funding from an alternative lender, please contact BRI Business Recovery and Insolvency. There are various formal and informal recovery options available that do not necessarily require an unlimited personal guarantee to be provided.
Initial interviews are always free of charge, without obligation and BRI pride themselves on providing the right advice first time, every time, regardless of any resulting fee.