KEEPING YOU INFORMED • Company Voluntary Arrangements • Individual Voluntary Arrangements - Consumer Debts • Liquidation • Individual Voluntary Arrangements - Business Debts • Administration • Bankruptcy Appointments www.griffinandking.co.uk | email: janet.peacock@griffinandking.co.uk Griffin & King, 26-28 Goodall Street, Walsall, West Midlands WS1 1QL There’s a reason why high street banks don’t lend money to companies in financial difficulties. That’s because the loan stands a high chance of not being repaid. So, bring on the so called “challenger” banks. Business owners will have an answer within a few minutes to a loan request according to the online user friendly web sites! What could be easier? No need to bother with budgets or cash flow projections. The sky high interest rates and the personal guarantees aren’t enough to deter desperate directors. Sign here, thank you, the money’s yours. Fast forward a couple of months and the new money has been consumed by the old problems that caused the financial difficulties in the first place. That’s when we often get called. We assess the position of the business and, unfortunately, more often than not, have to advise the directors that they have a failing business which is going in the wrong direction and insolvency proceedings are inevitable. So, why wasn’t there a proper appraisal of the financial position of the business at the time the loan was made? Especially bearing in mind the consequences for the guarantors. I don’t know. It usually takes me about half an hour to assess whether a company is losing money and how much – why don’t the loan advisers do this? What do they do? Most insolvencies we’re dealing with now at G&K include such debts to some degree. Here’s an example – a straight forward company sold plumbing materials through the internet. Around six months ago it borrowed around £140,000 from a “challenger” bank to pay outstanding debts to HMRC Contd. on page 2 THE NEXT MIS-SELLING SCANDAL? BUSINESS RESCUE, RECOVERY AND TURNAROUND News and views from the Griffin & King team WINTER 2018/2019 Management team: Janet Peacock, Cheryl Gray, Tim Corfield, Emma Wallis, Mark Shaw. Download a copy www.griffinandking.co.uk by Tim Corfield ZOMBIE COMPANIES Page 2 IVA’S. WHAT DEBTS CAN AND CAN’T BE INCLUDED Page 2 CORPORATE STATS 2018 ARE OUT! Page 3 PERSONAL STATS 2018 ARE OUT! Page 3 THE LAST WORD Page 4 COMPETITION TIME Page 4