Published: 22/04/2019 By Andrew BaileyAn Interesting article about law firms being seen to resort to borrowing from multiple lenders in order to get immediate access to cash (see link below). Often these loans will have personal guarantees attached. From what we see in our insolvency work at the moment, it is certainly not exclusive to the legal sector and the option of taking out loans to ease cash flow concerns is an attractive option for business owners across all sectors.
Unfortunately we often find that it is a short term fix and will not resolve underlying issues that are not addressed. These issues will continue and if a business does eventually enter into an insolvency process then it only results in the additional problem of personal guarantees needing to be dealt with.
If you or your business is struggling financially, why not get in touch to see if we can ease the burden