Connect with us

Business

Coronavirus: Crawley businesses urged to check type of loan before borrowing

Published

on

Small business owners have been urged to check the type of loan they are signing up to before borrowing against their personal assets, as many have unnecessarily secured personal assets to the future of their business.

Despite the government offering to guarantee interest-free and charge-free loans, which are to be offered by as many as 40 of Britain’s biggest lenders, some banks continue to offer business owners their standard, and more expensive commercial loans, which are secured against their personal property.

Although some banks have said they will stop demanding personal assets, such as property or savings as collateral, the question still remains whether those that have already signed up for this financial help will be able to uncouple their hard-earned assets.

Oliver King, an associate solicitor in corporate law at Langleys Solicitors, said:

“Businesses that quickly found themselves in trouble, due to the current economic situation, may have already taken out loans, and have been obliged to provide additional security and personal guarantees by lenders, which could come back to bite them at a later date.

“Following pressure from the Institute of Directors to stop this practice, we urge the banks that have taken personal guarantees to do the honourable thing and waive the guarantees, rather than punish already hard-pressed SMEs.

“This would need to be a voluntary act by the banks, and one that continues on the current wave of goodwill we have seen in recent weeks, to avoid punishing SMEs further down the line.

“It remains to be seen whether, as the Treasury has indicated they expect, all of the lenders on the scheme to drop the requirement or not.

“There have also been calls for a similar scheme to be opened up to smaller, challenger banks that specialise in lending to SMEs, making them agile enough to make swift decisions, something which is certainly required in the present climate. As well as separate calls to open up the Coronavirus Business Interruption Loan Scheme (CBILS) to all businesses with turnover of less than £45m, as opposed to just those businesses that cannot access other loans.”

“It is essential that any small business looking to benefit from the government’s support programme looks into the details of the loan scheme being offered by any lender, extremely carefully. If directors are in any doubt then they should take immediate legal advice on the implications of the terms being offered to them.

Greater adoption of video call facilities

“Further to this, we may see a development in the way high street banks deal with legal advice. Any individual providing security or a guarantee on behalf of a third party, must obtain independent legal advice on the form, content and effect before proceeding. This absolute requirement is almost never waived, and is done to ensure that the guarantor is under no undue influence or duress to provide the guarantee.

“Previously at high street lenders this has been obliged to be done via a face-to-face meeting. However, in recent years, challenger banks and forward-thinking lenders have permitted this advice to be provided via a video conference call, something which the larger, high street banks have not yet adopted. Although I expect high street banks to miraculously now realise that this can be carried out over the telephone or on a video call and update their practices.”

Business

Furniture Village opens its doors in Crawley’s County Oak Retail Park

Published

on

Crawley welcomes Furniture Village who will open a brand-new store in County Oak retail park this Boxing Day.

The new location offers a Carpetright concession, providing a one-stop-shop for customers looking to update their homes.

Visitors to the new Furniture Village store will be invited to create their ‘home in one’, by exploring collections for every room of the house, from sofas to beds to dining.

Charlie Harrison, Commercial Director at Furniture Village, comments:

“With much of the UK under lockdown, I’m delighted we’ve been able to open our new store in Crawley. County Oak is a fantastic shopping destination and the ideal choice for Furniture Village.

“It’s been a challenging year for everyone, but I am incredibly proud of the Furniture Village team which continues to offer industry-leading quality, choice and service. As well as Family Retailer of the Year, we’ve also been awarded National Bed Retailer of the Year so I’m particularly looking forward to welcoming customers to our new bed department.”

The store will see a team of 11 expert sales consultants offering valuable insights and advice to customers, all made possible thanks to enhanced Covid-19 safety measures.

These include temperature checks, PPE for all staff and hand sanitisation stations, along with an appointment booking system which can be accessed via the website.

Charlie Harrison, Commercial Director at Furniture Village, adds:

“Customer safety is still, and will continue to be, a priority for us. The feedback from all of our existing stores continues to be overwhelmingly positive, with the appointment booking system providing reassurance and exceptional service for customers.”

The store will open at 9am on Saturday 26th December 2020. Opening offers include Sale discounts of up to 50% plus an additional £50 off every £500 spent.

Continue Reading

Trending