Recovering from mis-sold finance

  • 23rd November 2015
  • News
  • Stewart Hindley

There are various financial issues and problems which can strike hospitality and accommodation businesses, and although it is important to take steps to safeguard your business, there are times when you may experience problems which are beyond your control. For example, many business owners have been mis-sold financial services and products in recent years, and this can be a challenging problem to rectify. If you have experienced this, our hotel finance specialists are here to help.

Interest rate hedging products such as swap rate and structured collared deals have been among the most problematic products sold to hotel and B&B owners in recent years, as they were purchased under the misapprehension that rates would remain flat. It has been found that many financial institutions sold this type of interest to business owners without fully informing them of potential risks, leaving them open to potential financial disaster. This means that business owners who were mis-sold products can now make claims against the lenders who misled them.

For hotel owners pursuing these types of claims, one of the biggest worries is ensuring that their business can keep on as a going concern as they navigate the legal process and try to manage the losses they have experienced from mis-sold financial products. It would be a huge shame for a business to fail because of something that was no fault of the owner or staff, which is why we endeavour to help hotel owners who find themselves in this situation. We do this by helping to build business recovery plans which will give you the best chance of securing essential refinancing.

We have in-depth, specialist knowledge of the accommodation and hospitality business which puts us in the perfect position to meet the unique challenges facing your business. Hotels, guest houses and B&Bs have unique needs in terms of seasonal cash flow, which means you may need a more unusual structure when it comes to loans and debt services. We can help you to meet an arrangement that suits these needs and gives you the best chance of recovering from mis-sold services.

Stewart Hindley

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