WITH PERSONAL GUARANTEE INSURANCE (PGI) POLICY, YOU GAIN UNLIMITED ACCESS TO THE BUSINESS SUPPORT SERVICE – A DEDICATED NETWORK OF PROFESSIONALS WHO ARE ON HAND TO HELP YOU THROUGH ANY FINANCIAL DIFFICULTIES THAT YOU MAY ENCOUNTER.
But how much of a difference could they really make?
Here’s a case study
Trampoline Park gets firm support from Personal Guarantee Insurer at unsteady time
It is no secret that managing cashflow is one of the hardest aspects of running a small business.
Xtreme360, is a trampoline park located in St Neots, Cambridgeshire. The business was set up by its three directors who secured asset finance to fund the fit out of the building. The directors were required to sign personal guarantees as a condition of the loan and they took the wise step of obtaining Personal Guarantee Insurance from our specialist partner Purbeck Insurance Services to help protect their personal assets.
As is not unusual, the business fell into cash flow difficulties. Income was good but the profit was not covering the loan repayments to the extent they had hoped.
It was during this difficult period that the directors called upon the advice and counselling offered by Purbeck to policyholders.
David Parr, the Finance Director of Xtreme360:
“Cash flow kills businesses and I could see this was becoming a real danger for us. We had started this business with the best of intentions, but costs escalated and until the asset finance was paid off, we would be operating at a loss.
We contacted Purbeck who helped us think through our options objectively. They introduced us to a finance broker to look at refinancing the debts; discussed the option of sub-letting excess space within the premises; and introduced capital allowances experts. They also put us in touch with one of Purbeck’s other clients who ran a franchised trampoline park to discuss best practices.
We worked out a restructuring of the finance and attracted a new investor who has got us back on track.
Our debts are now settled which is a considerable weight lifted after three years of considerable stress. Furthermore, the business is in excellent shape, very much a going concern and with growth plans working well.“
Knowing that the Personal Guarantee insurance was in place created valuable peace of mind during a very difficult time, but Purbeck also did as much as they could to help us avoid defaulting on the loan. Their help, guidance and counselling, to me personally, over a significant period, was invaluable and very much appreciated.”
Experiences like this are not unique; but the support that they can get can be outstanding.