- Original Poster
- #1
I will try and keep this breif...
We own a successful events business, turnover circa £1.5 million and a 25% net.
Our business is based around designing and producing events, we have virtually no asset value and only two full time employees (plus two directors, husband and wife).
We employee freelancers on a job by job basis, this has allowed us to contract our business to the bare minimum, but….
As of today we have cash in hand, as with most businesses we are owed a huge amount of money which is being drip fed, we are in tern drip feeding our suppliers (we paid all our freelancers the first day of lock down).
We can easily survive the summer but our industry relies on crowds and public gatherings, no doubt the last restriction to be lifted.
My question is.. If we apply for the CBILS loan and use the money to pay the directors salary and our staff wages and the restart is so delayed we eventually run out of cash early next year, what happens if we liquidate the company?
The directors are currently paid by minimum payroll and maximum dividends, we would switch the directors to a salaried position.
Are the banks wanting personal guarantees on the CBILS loans? We currently have no borrowing within the business so this would be the first financing we have ever had….
We own a successful events business, turnover circa £1.5 million and a 25% net.
Our business is based around designing and producing events, we have virtually no asset value and only two full time employees (plus two directors, husband and wife).
We employee freelancers on a job by job basis, this has allowed us to contract our business to the bare minimum, but….
As of today we have cash in hand, as with most businesses we are owed a huge amount of money which is being drip fed, we are in tern drip feeding our suppliers (we paid all our freelancers the first day of lock down).
We can easily survive the summer but our industry relies on crowds and public gatherings, no doubt the last restriction to be lifted.
My question is.. If we apply for the CBILS loan and use the money to pay the directors salary and our staff wages and the restart is so delayed we eventually run out of cash early next year, what happens if we liquidate the company?
The directors are currently paid by minimum payroll and maximum dividends, we would switch the directors to a salaried position.
Are the banks wanting personal guarantees on the CBILS loans? We currently have no borrowing within the business so this would be the first financing we have ever had….
