When good businesses are unfairly punished

  • 24th July 2015
  • News
  • Stewart Hindley

Even now, when the economy is experiencing sustained growth, businesses may run into difficulties which mean they are unable to fulfil their financial obligations. When a business runs into such a situation, it’s not necessarily an indication of a fault in the business plan or financial model. All too often, it’s unforeseen and unavoidable sources which have caused financial or liquidity issues. In recent times, it has regrettably been the financial institutions such as lenders and mortgage providers that rely on successful businesses that have caused the most damage. Whilst the PPI scandal has already been well documented, less coverage has been given so far to the harm caused by the mis-selling of fixed rate loans.

Fixed rate loans are always a valid financial solution for businesses to investigate, as they inherently guard against volatility in the markets and fluctuations in rates. If they were as straightforward as the name implies, there would be few problems with them. Unfortunately, there were several terms and conditions of many fixed rate loans that were detrimental to businesses – particularly when they made efforts to exercise a break clause or reach an early settlement. In effect, many businesses which were successful ended up with financial problems purely from trying to service debt payments at a higher rate. There are ongoing official legal investigations into this matter, but that process in itself does not immediately help businesses affected by it.

Businesses in the accommodation industry, such as bed and breakfasts, guest houses and hotels, have been hit particularly hard by this fixed rate loan mis-selling scandal. When a business has been punished financially for being successful, you can see why in many cases refinancing is required.

Arranging bed and breakfast and hotel finance, loans, mortgages and refinancing is what we do best. Our expertise in business planning and business recovery is complemented by our understanding of the business model for success in the leisure and accommodation sector. We pride ourselves on our impeccable reputation amongst some of the major institutions in loans, mortgages and financial services, and can help you to secure refinancing to get your business back on track.

Stewart Hindley

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