With inflation and interest rates on the rise some of your customers may be looking for ways to manage a liquidity squeeze. Unfortunately, those customers may see their trade suppliers as an “alternative financier” and may either extend your trading terms or indefinitely delay payment to ease […]
When you lend money, or offer goods or services on credit, how do you protect your interest in the case of non-payment of the debt? In this article, we consider how you might secure this debt with an interest in land. Key mechanisms for doing this are via a ‘charging clause’ in a director’s personal guarantee, and/or via registration of a mortgage.
A personal guarantee is a promise by a person to be answerable for a debt or obligation of another person/entity in the event that person/entity defaults. Seeking personal guarantees from directors is a common way for SMEs to limit their risk in commercial credit arrangements with other SMEs.