Escalation in ‘Personal Guarantee’s’ – what could go wrong?

Let’s start by explaining what a ‘PG’ is and isn’t. A PG is most often asked for when a Company is seeking a loan from a bank and the bank seeks to tie in the Directors personally, it is basically an undertaking that if the company cannot pay back the loan then the Directors will do it themselves. This does of course serve to undermine the concept of a ‘Limited Liability Company’.

Expect me to ask about your ‘GROSS MARGIN %’

News that Gross Margins at Patisserie Valerie were ‘constant and out of line with peers’ confirms that everyone was ‘asleep at the wheel’, not just Luke Johnson. This gives me the perfect opportunity to jump on my soap box and promote Gross Margin percentage (Gross Profit as a % of Sales) as the most important measurement for a trading business (with cash controls a very close second).

Thinking of holding commercial property in a SIPP? – be aware of the pitfalls

Buy to Let investors frustrated by increased regulation and diminishing returns from residential portfolios have turned to commercial property. We talk to many new buyers in this market, usually testing the market with ‘semi-commercial’ properties (typically retail on ground floor and flats above) because they at least understand renting flats. The auction rooms have seen Read more about Thinking of holding commercial property in a SIPP? – be aware of the pitfalls[…]

Are you an RBS/Williams & Glyn business customer – if so what should you be doing?

The background to ‘The Alternative Remedies Package’ is well documented, in fact it could justify a book. After ‘Humpty fell off the Wall’ in 2008 and RBS had to be recapitalized by the UK Government to the tune of £45 billion, the European Commission ruled this was a form of ‘State Support’ and because RBS already Read more about Are you an RBS/Williams & Glyn business customer – if so what should you be doing?[…]