Helping to take the stress out of dealing with The Bank at the time you need it most
Guarantee Assist Service
2023 will be a difficult year for many business’ and many company directors and business owners will be faced with the difficult decision of having to take insolvency action either to achieve a restructuring of the business, or just to accept defeat and make sure it is professionally closed down.
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This is an incredibly difficult time for most people, dealing with IP’s, angry or disappointed suppliers, loyal staff, and banks and finance companies. All of this having to be done when you have lost your business and livelihood or are trying to restart a phoenix with everything that entails.
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Then there is the inevitable letter from the bank calling up the personal guarantee !
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Many directors will have given the bank an unsupported guarantee confident in the knowledge it will never be called and often when the bank were asked to lend more money or facilities were being re-negotiated.
Negotiating with the Bank
Negotiating with the bank is a skill and their Recoveries or Collections department are very experienced at this task. They have various tools and options and they will make it clear from day one that it is a very real legal liability and they will want proposals for payment from you.
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Our Senior Partner at 4 Business has spent over 30 years helping business owners raise finance, restructure business’, and negotiate with banks and finance companies. Before becoming a self employed consultant he spent 17 years working for a major high street bank ending up as an Intensive Care Manager dealing with financially stricken business customers and tasked with getting the bank’s money back. He know how they will go about it and because of his background he can talk their language and they will happily work with him.
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Our experience is that negotiating your own personal guarantee at a time of great stress is a very difficult task to undertake successfully, and at minimal cost to you financially and mentally. If you and your wife own your own house the bank will put pressure on and whilst you might be able to cope with the added pressure it will be very unpleasant for your wife or partner.
Our Service
We can take the personal out of this process and step in between you and the bank and negotiate on your behalf. Our experienced consultant will personally deal with all the negotiations and keep you informed of the banks response at all times.
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We have no idea how long this will take but we know it is important to appoint us straight away so we can step in and use our experience to put the bank on the back foot and buy time to negotiate. We may recommend certain defensive action in some cases where we feel it is necessary, but by and large we expect to achieve a settlement around the 50p in the £ as we have done so on many such cases over the last few months and years.
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We can also help with arranging a loan to pay the Bank settlement if they will only settle for cash rather than instalments and our end success fee can be included in this loan.
Our Fees
We charge an initial Fixed Consultancy Fee and then an End Success Fee that combined will never be more than 10% of the end write off value we achieve in the bank settlement, and the fees are entirely dependent on the Value amount of the guarantee and the individual circumstances.
Our Initial consultancy fee will be between £500 and £2000 depending on the amount of the guarantee and for larger amounts the payment can be split over two months. We will agree the End Success Fee at the outset and this only becomes payable once we have negotiated a settlement with the Bank or other guarantee. We can assist with a loan for cash settlements with the bank and our fee if required.
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