G&K For advice on insolvency issues call us on your local number opposite www.griffinandking.co.uk | email: janet.peacock@griffinandking.co.uk See us on: G&K DOES IT MATTER WHO YOUR CLIENT GOES TO FOR AN IVA? As you will see from the recent stats in this Newsletter, IVA’s are on the increase and you may have clients asking which firm would you recommend to advise them. The range of operators in this market is really very diverse. It includes the big IVA debt factories that deal with their clients through call centres and the internet and a model that fits into a process. It includes operators that don’t have the experience or knowledge to deal with business debt and negotiate with business creditors or HMRC. It includes operators that rely on the services of an IP to “sign off” on IVA proposals without having the day to day experience of dealing with the issues that arise. We’ve seen all of these types of operators in action - to the detriment of their clients. At Griffin & King we deal with things differently. We will always have a meeting with a potential client, if required, and we will fully understand all of the issues involved before we give specific, tailored advice to each particular client. If an IVA isn’t suitable, we’ll say. We don’t recommend going into an IVA if the outcome is too marginal. We have a good rapport with business creditors, including banks and HMRC and will negotiate the best deal on behalf of our client. We’re always available to resolve any issues that arise and welcome face to face meetings during the currency of the IVA. We’re proud of our record and our reputation. We know we’re biased. But, if any of your clients do ask about an IVA or you think it could be a solution to their financial problems, don’t let them take any chances with a firm they don’t know and pass them our name - we’ll look after them. Testimonial from Clients; “Atatimeofgreatstressandanxiety,bothmyinitialtelephonecalland thenmymeetingwithCherylwasconductedinafriendly,helpfuland totallyprofessionalmanner.Thankyouforhelpingmethroughthis”. JG – 3 January 2018 “Firstclassservice.Speedyandveryhelpful”. RC – 5 September 2017 Please do not hesitate to contact one of us - Cheryl, Janet, Tim, Carrie, Maggie all happy to help. by Tim Corfield ANOTHER FRANCHISEE OPERATION GOES UNDER! By Tim Corfield I seem to deal an awful lot with failed franchisee operations. They always seem to have a few common factors; • The franchisee has “invested” a lot of his personal wealth (often his life’s savings) • The franchisee has committed to personal guarantees - typically, the bank, the landlord and, of course, the franchisor • Assets that cost significant amounts are now worthless • A period of trading time for the franchisee where he hasn’t earned any income • The franchisee didn’t take any professional advice about the business opportunity I’ve dealt with Andrew recently. He became redundant around two years ago and put his life savings (around £100,000) into a retail franchise operation. He traded through a limited company but the large debts were personally guaranteed. The total indebtedness of the company was around £175,000 of which £60,000 was personally guaranteed. Andrew has now just turned 60 and just started a night security job earning £200 per week to meet his household expenditure. Andrew said “of course, with any new business you don’t make any profits for at least the first twelve months....” Hmmm - I wonder who told him that? That doesn’t sound like a good business proposition to me, especially one you’ve just paid £100,000 for! Unfortunately, all we can do for Andrew is to liquidate his limited company, and help him with an IVA to deal with his personal debt problems. Contd. on page 3