Purbeck Personal Guarantee Insurance is calling on those businesses revealed to have borrowed over 20% of their turnover under BBL and CBIL finance schemes to beware of insolvency warning signs. Todd Davison, MD of the company, commented: “It is critical that businesses look ahead at the loan repayments they will need to make, watch for the insolvency warning signs and seek expert advice on next steps such as turnaround finance; refinancing; Time to Pay; Company Voluntary Arrangements or Administration.” He warned that “In the case of a company becoming insolvent, if a debt that’s been secured by a personal guarantee is not repaid in full, the creditor can then pursue the director(s) who signed the guarantee personally for the remainder of the debt.”
Read more: Business Matters
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