We are delighted to announce our latest victory which is a £2800 cheque for a client from Halifax in respect of PPI on a credit card which was mis-sold. There are many companies out there who have mis-sold PPI and getting compensation off of them is necessary to make them change their selling methods and realise that they can't simply tie a loan up with a lucrative insurance, just to earn commission.
If you have a PPI probelm you maybe need to look at the website, helpwithdebtuk. www.helpwithdebtuk.com.
Tuesday 30 June 2009
Is Factoring the boost your business needs
Factoring: Is it for your business? I often get enquiries from businesses who are struggling for cash flow, but who have a good ledger of sales that are not delivering immediate cash. As cash can help a business expand it makes sense to release this if possible. Factoring can do just that, as can invoice discounting. These are known as cash flow solutions.
Factoring can be a great way for some companies to raise finance and shift borrowing off of their balance sheet. It is an alternative but similar to invoice discounting. It has its pro’s and con’s. If you are closing one business and maybe looking to pre-pack the solution into a liquidation or an administration, then we will be able to finance your wishes.
Advantages:
It is among the quickest way to get advance cash. - Overhead charges get automatically reduced with the cut in invoice processing activities.
Getting cash with factoring helps in eliminating the risks of bad debts as these can be insured against.
The business owner becomes free of various other obligations connected with the invoice processing like depositing cheques and entering payments.
The task of debt collection is undertaken by the factoring company and so it helps the company by releasing time for it to concentrate on value added activities.
It gives an opportunity to offer credit terms to customers without hindering cash flow.
Factoring brings no extra liability in balance sheet and hence does not result in creating hassles while obtaining other types of financing.
Early payment discount is another benefit of factoring. Payment of bills before the scheduled time brings in many benefits in the form of discounts.
It is an easy way to have an access to unlimited capital as with an increase in sale more money becomes immediately available to business owners.
Some other benefits include building credit, quick and easy process, concentration on marketing and securing new accounts and no long-term obligation.
Disadvantages:
The biggest disadvantage is it makes the process complicated as it acts as an extra link in the process. However we have good links with a number of companies and can advise at the outset whether or not we can your deal away.
It is useful for companies with disputes and queries to hold up payment which may result in claw backs.
The ambit for borrowing gets narrowed, as account receivables will not be available for security. Many banks often require this to be available for them to add onto other borrowing.
Factors may want to get your customers examined and may have influence over your ways of doing business. This is usually the case where there are few customers of high value.
In case the customers do not repay the money, you have to pay their amount entwined in factoring. It can lead to the inability to draw down full amounts each month.
It is costlier than other sources of finance though it is competitively priced.
Few customers don’t want to deal with a third party and are not interested in factoring.
Monday 29 June 2009
Partnership Administration
Partnership Administration
A Partnership Administration Order is similar in some ways to Administration for a limited company. It is a rescue vehicle often used by larger partnerships such as accountants, solicitors and architects. Many of these are now trading as limited liability companies, but many partnerships do still exist. For those running out of cash it is certainly something to consider.
All of the partners must be solvent. Effectively the partnership administration is to protect the partnership whilst a restructuring, refinancing or sale is considered.
The process is begun by preparing a statement of affairs which will show the true position of the partnership. The partners can then apply to court, and we would assist in this process as it can be daunting. An administrator will be nominated and again we will assist with this as that person needs to be suitably licensed for this type of work. It is usual for an interim order to be granted to prevent creditors taking any action against the partnership whilst the court consider matters.
At the hearing the court considers the application and whether it should allow the court to grant powers to the administrator to run the partnership affairs. The court may then grant the order which gives full protection to the partnership – a full moratorium providing all conditions are met and the rules observed.
The admin order is granted only when the one of three options is being pursued.
1. The proposal of a partnership voluntary arrangement
2. Survival of all or part of the business as a going concern
3. A more orderly realisation of assets than may happen in winding up (In other words avoidance of the meltdown of assets inevitable in liquidation.
The IP will over the next three months put his plans into operation for achieving one or more of the above three options
The benefits of Administration are
1. Protection of the partnership business from creditors
2. The IP has breathing space in which to develop and put in place the rescue plan.
3. It stops on creditor from exerting more influence on matters than others.
4. It generally leads to a better return for all creditors.
5. In the event that one or more partners is also suffering financially, it prevents an attack on partnership assets by a rapacious creditor.
The risks or downsides are:
1. It is necessarily costly, but maybe not as costly as the whole partnership failing.
2. The business world will know of the administration as all communications will record that fact.
3. There must be sufficient cash available for the partnership to trade through the administration process, however a good plan will factor this into the equation.
4. The individual partners may also depending on their personal financial situation, need to do simultaneous IVA’s
If you are in a Partnership that is struggling at present you should take urgent initial advice to see what can be done to ease your way through the financial difficulties you are in.
Friday 26 June 2009
PPI - were you mis-sold it?
Have you been mis-sold Payment Protection Insurance? PPI (Payment Protection Insurance) policies were designed to cover the cost of loan repayments in the event that you were off sick or became unemployed. They were mainly taken out with loans, mortgages and credit cards.
The major problem with PPI is that most people who were sold the policy didn't really need the cover and in many cases the policies were sold to people who could never qualify for a claim anyway,eg retired, self-employed, unemployed etc. Also bad backs and stress " the main two reasons for being off work " are usually always excluded from the contract.
Some of the major banks have already been fined for mis-selling.
It is estimated that over £10 Billion of policies have been sold and as many as 30
million policy holders may have a claim for compensation.
Statistics indicate that as many as 8 out of 10 of these policies may have been sold incorrectly.
Some instances of mis-selling include
• You were told you had to take out PPI in order to get the loan or product.
• You were pressured into buying PPI.
• You were not informed you could buy PPI from an independent Provider 80% cheaper.
• You were NOT told about any exclusion’s.
• You were not asked whether you already had sufficient Insurance cover.
What can Payment Protection Refunds do for you?
Payment Protection refunds will establish whether or not you have a valid claim for compensation.
If you feel you were a victim of mis-selling then I can help you recover your premiums and interest .
The involvement of our solicitors on claims where the premium for the Insurance ( PPI ) was added to the loan will mean that they will be seeking settlement on the basis of , The Lump sum involved, Compound Interest and the refund of any secret or hidden commissions.
Don't delay of you have suffered from the PPI mis-selling scandal, contact me now.
The major problem with PPI is that most people who were sold the policy didn't really need the cover and in many cases the policies were sold to people who could never qualify for a claim anyway,eg retired, self-employed, unemployed etc. Also bad backs and stress " the main two reasons for being off work " are usually always excluded from the contract.
Some of the major banks have already been fined for mis-selling.
It is estimated that over £10 Billion of policies have been sold and as many as 30
million policy holders may have a claim for compensation.
Statistics indicate that as many as 8 out of 10 of these policies may have been sold incorrectly.
Some instances of mis-selling include
• You were told you had to take out PPI in order to get the loan or product.
• You were pressured into buying PPI.
• You were not informed you could buy PPI from an independent Provider 80% cheaper.
• You were NOT told about any exclusion’s.
• You were not asked whether you already had sufficient Insurance cover.
What can Payment Protection Refunds do for you?
Payment Protection refunds will establish whether or not you have a valid claim for compensation.
If you feel you were a victim of mis-selling then I can help you recover your premiums and interest .
The involvement of our solicitors on claims where the premium for the Insurance ( PPI ) was added to the loan will mean that they will be seeking settlement on the basis of , The Lump sum involved, Compound Interest and the refund of any secret or hidden commissions.
Don't delay of you have suffered from the PPI mis-selling scandal, contact me now.
Thursday 25 June 2009
The Pre-Pack Liquidation
While I've got a bit of time on my hands I thought I'd post up another few pages of advice that I've written about the company rescue regime in the UK. At these times many companies are struggling, often because their own customers are having a rough time. For many, it is the Limited company shell which is in trouble, as it may carry debt and not the actual underlying business itself. For these businesses the answer may be a prepack liquidation, whereby the business can be saved along with jobs but the debt can be hived off in the insolvent Limited company shell.
Contact me for more information
Prepack liquidation
A pre-pack liquidation is a favoured way for a company that is in financial difficulties, to properly and correctly close the loss making entity, so as to protect the directors from accusations of wrongful trading, but to enable the business and the employees to be transferred to a debt free company.
It is the view of government that it is better to preserve the business and let the legal entity fail, than let a potentially profitable business founder.
We have the expertise to help you set up a new company and with the blessing of the proposed liquidator of the insolvent company, conduct a sale for value of the on-going trading element of the insolvent business to new co and then close the insolvent company at a creditors meeting.
There has been comment recently that there are too many pre-packs happening now. However, with increasing failures of companies, this is to be expected. A lot of businesses that are experiencing financial difficulties, are on an underlying basis, sound trading companies. If you take away their debt, they will flourish and continue to employ staff and generate sales. It is vitally important in today’s economic climate, to keep people with skills in employment, and to get companies trading with each other.
We can help pre-pack such businesses so that they can continue to build on the wealth of the country.
If you would like to pre-pack your insolvent company and re-trade in a debt free new co, please call us for an informal conversation, on how we can assist, and the likely timescales.
Contact me for more information
Prepack liquidation
A pre-pack liquidation is a favoured way for a company that is in financial difficulties, to properly and correctly close the loss making entity, so as to protect the directors from accusations of wrongful trading, but to enable the business and the employees to be transferred to a debt free company.
It is the view of government that it is better to preserve the business and let the legal entity fail, than let a potentially profitable business founder.
We have the expertise to help you set up a new company and with the blessing of the proposed liquidator of the insolvent company, conduct a sale for value of the on-going trading element of the insolvent business to new co and then close the insolvent company at a creditors meeting.
There has been comment recently that there are too many pre-packs happening now. However, with increasing failures of companies, this is to be expected. A lot of businesses that are experiencing financial difficulties, are on an underlying basis, sound trading companies. If you take away their debt, they will flourish and continue to employ staff and generate sales. It is vitally important in today’s economic climate, to keep people with skills in employment, and to get companies trading with each other.
We can help pre-pack such businesses so that they can continue to build on the wealth of the country.
If you would like to pre-pack your insolvent company and re-trade in a debt free new co, please call us for an informal conversation, on how we can assist, and the likely timescales.
The Company Voluntary Liquidation
As I post I will post up a series of helpful passages on various insolvency procedures with which I an familiar. As an insolvency solicitor I can offer help and advice on any personal or corporate problem you have. Feel free to post any question you feel you may need help with.
Company Voluntary Arrangement
The company voluntary arrangementis ofern referrred to as a CVA. It an alternative to the creditors’ voluntary liquidation. Both corporate debt solutions are made good use of, and have been on the statute book since the advent of the Insolvency Act 1986.
The CVA is available for those who have an insolvent business which can’t pay it’s debts as and when they fall due, but which, if giving some breathing space would be able to make regular monthly payments into a fund which could be distributed to creditors annually. In practice a company must be able to contribute at least £1,000 a month. For a business with a significant turnover, this should be easily manageable. It is often combined with sever cost cutting, which enables the business to re-structure itself and emerge leaner. On occasions it follows an administration, which may have first been used to protect the assets of the company from plunder from creditors taking enforcement action.
The creditors voluntary arrangement, can be used for a partnership, and will be known as a PVA, or partnership voluntary arrangement, and will be useful for accountants, solicitors and architects.
Most arrangements of this sort stay in place for 60 months and may also include lump sum payments at various stages, for instance if it is envisaged to sell property.
It is not to be undertaken lightly as to fail it would mean that all unpaid debts would still remain due. It is worth bearing in mind that business can change over time, and a commitment that is entered into this month, may not hold up 12 months later.
If you need advice please call Steve on 0116 2171406 or follow the link
Welcome
This is about the third blog I've started as I seem to keep losing my passwords. If you have found me, at least someone has. If I have written anything that has interested you, even better.
I'm a novice at this, but hopefully I'll get better as I go along.
I'm a novice at this, but hopefully I'll get better as I go along.
Welcome
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