<p>Newspager Mark Grant of The Business Finance Branch said on this morning's call that a lot of companies applying for finance have what he refers to as Bounce Back Application Syndrome. Translate, they expect unsecured loans to be offered to them with a simple form and barely any underwriting. That may have been the case with loans offered during the pandemic but that is now behind us. Are you seeing examples of companies that have become disconnected from credit reality and think that they should be able to access finance on a whim? In short, have companies been ‘spoilt’ by the easy underwriting that was in place during the pandemic?&nbsp;</p>

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BBL Application Syndrome

We are seeing many companies struggling with cashflow problems and many of them will have little or no access to traditional bank lending. Therefore they are looking for unsecured loans but not fully understanding that these loans often come with requirements for personal guarantees.<br><br>Often they take the loans as they see this as the only options and this can lead to clear problems if the business then fails

Mr Gavin G Bates

I have been working in the insolvency and business recovery world since 1990. 

For many SME businesses, the issues of insolvency and cash flow can be difficult to deal with and it can difficult to know whom to turn to and what is the right advice.

As a licensed insolvency practitioner I focus on helping directors and their businesses to understand the issues, and the possible solutions and answer the many questions they will have. 

To achieve this, I focus on understanding your business first, then what the directors and business want to achieve, taking the time to make sure everyone is fully aware of the options open to them and the advantages and disadvantages of each option. 

I also specialise in solvent liquidations (or commonly referred to as MVL's). This type of work is very different from insolvency matters and should be planned long in advance. In general, directors are looking to retire or exit the business and want to ensure that this is completed correctly but also in a tax-efficient manner. I work with your accountant to ensure the process is smooth and the funds are returned to shareholders as soon as possible.

Finally, I also work with individuals who have personal insolvency issues. Obviously, this can be very stressful for those involved, but I believe that if the individual understands the process then it will be easier to deal with.

Of course, I am not all about work, in fact, I used to be involved in ultimate frisbee, and I still would be but my knees now have very different ideas so I have to settle for watching my children play the game instead.

Telephone: 07583 863195.
Email: gavin@smartbusinessrecovery.co.uk
Website: www.smartbusinessrecovery.co.uk



The Bounce Back Loan fulfilled its purpose and helped to retain jobs and keep some businesses open during the pandemic. But the Bounce Back Loan application process has left a legacy of some business owners' expectations on loan applications that doesn't match the 'business as usual' credit process. Affordability? Yes, we now have to prove it. Personal guarantee? Yes, they will now be required - and the lender will ask about your assets and personal worth. And application documents? Sorry, there is now more than one page. There is no automatic underwriting decision available to businesses post-pandemic - and a robust application and underwriting process is part of the return to normal.

Mark Grant

Specialist finance brokerage - Our job is to understand your business finance requirements to source the best solution and outcome, including: Business Loans | Asset and Vehicle Solutions | Invoice Finance | Trade & Supply Chain Funding | Commercial Mortgages

BBL Application Syndrome

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Mr Gavin G Bates

Insolvency Practitioner at Gavin Bates

Mark Grant

Business Finance Adviser at The Business Finance Branch

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