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With many businesses devastated by the Covid pandemic, government measures like furlough and bounce-back loans were often lifesavers. However, when the time came to start paying back, not everyone repaying as easy as borrowing. Sometimes this was due to ongoing challenges, but some cases were self-inflicted. Bounce-Back Loan Fraud — Convictions Begin Because of the urgency of the situation, bounce-back loans were oft

For anyone facing bad debt that they can’t pay off in the short term, an individual voluntary arrangement (IVA) can be an ideal way of clearing the debts over a longer period, without being vulnerable to action by their creditors. IVAs are arranged on the basis of what the debtor can afford on a monthly basis. As we know all too well, however, inflation is now running at a 40-year high, driven largely by increases in

Have you ever been asked to act as a personal guarantor on a business loan? Maybe you’ve been asked by a business owner you’re on good terms with, or maybe you’ve considered taking on the role for a limited company you’re a director of. Is it a good idea to accept the request — and what could the consequences be? What Is a Personal Guarantee? There are various ways of offering security to a lender for a business loan

SMEs have faced multiple challenges for the past two years, but they might be forgiven for looking forward to better times, now all the lockdowns are behind us. Instead, a recent report shows that the cost of living crisis is creating a situation where more than two million SMEs are only just managing to break even. Why the Crisis? Many SMEs had a difficult time during the pandemic, but conditions haven’t impro

Most people would agree that the financial sector has been in dire need of more targeted regulation — and, on the whole, those companies that have always operated ethically would also agree. In a sector tarnished by everything from the LIBOR scandal to consumer scams, tougher regulations should allow firms already meeting or exceeding those standards to get a head-start. What’s the Background to the Strategy? S

It’s obvious to everyone now that we’re heading into recession. Energy and fuel costs spiralling and food prices rising are going to affect everyone on a personal level, but they could also have a knock-on effect on your business. Are you in a position to get through this? What’s Happening to the Economy? A number of factors have combined to create shortages (and therefore rising prices) across the

One of the few positive statistics from the first year of the Covid pandemic was a sharp drop in business insolvencies. This was driven by the various measures the government put in place to support businesses, in particular the furlough system. However, these measures have ended now, and the latest figures show that business insolvencies are climbing. What Do the Figures Show? The Insolvency Service has published th

Overdue payments are a fact of life in business, and unfortunately the situation only looks like getting worse. High inflation is going to squeeze everyone’s cashflow, and even if your customers are trying their best to keep up payments, they might be chasing bad debts themselves. So what strategies are available to you, if you want to chase money owed to you? Using Your Customer Relations When you have a probl

Official inflation figures have just been released for December, and it won’t be a surprise to many people that the news is bad. The figure is 5.4% — the highest inflation since March 1992. This is clearly bad news for consumers, especially those on low income, but what is it likely to mean for your business? Inflation Squeezing Household Spending Much of the recent inflation, the highest this century, is obvio

The liquidation of a company doesn’t always have to be a traumatic event. There are many reasons why a decision may be taken to close down a company and, as long as it has enough assets to pay all creditors in full, this can be done in an orderly fashion through a solvent liquidation. However, occasionally this procedure goes wrong, and the liquidator is forced to convert the process to an insolvent liquidation