CBILS and Debenture
Discussion
We took out a CBILS in April/May this year for obvious reasons with one of our businesses. We have now received a bundle of papers to sign from the bank (HSBC) for the debenture.
Although not fully clear, I suspect this is simply to offer up as security for the loan the assets of the business. I (perhaps wrongly) presumed I'd signed all this when we initially drew down the loan earlier this year.
Unfortunately, HSBC comms leaves a lot to be desired and I can't get through to anyone who can tell me why I need to sign again. Due to the perilous state of that businesses industry I've been careful to avoid all PGs with the business in case it goes under.
Any idea on what the process of a CBILS indebted company going into administration will be/is?
The debenture makes no mention of any directors property although it was delivered to my home address.
Although not fully clear, I suspect this is simply to offer up as security for the loan the assets of the business. I (perhaps wrongly) presumed I'd signed all this when we initially drew down the loan earlier this year.
Unfortunately, HSBC comms leaves a lot to be desired and I can't get through to anyone who can tell me why I need to sign again. Due to the perilous state of that businesses industry I've been careful to avoid all PGs with the business in case it goes under.
Any idea on what the process of a CBILS indebted company going into administration will be/is?
The debenture makes no mention of any directors property although it was delivered to my home address.
I suspect HSBC will be looking for security in respect of other facilities not the CBILS loan? Do you have other borrowings with them (and, for that matter, do you have any assets they could take security over?).
As stated elsewhere read it very carefully to ensure that they aren’t trying to charge anything they shouldn’t (eg premises owned by another company), that, if relevant, they aren’t trying to take security over a group of companies and that there is no personal guarantee.
As stated elsewhere read it very carefully to ensure that they aren’t trying to charge anything they shouldn’t (eg premises owned by another company), that, if relevant, they aren’t trying to take security over a group of companies and that there is no personal guarantee.
williaa68 said:
I suspect HSBC will be looking for security in respect of other facilities not the CBILS loan? Do you have other borrowings with them (and, for that matter, do you have any assets they could take security over?).
As stated elsewhere read it very carefully to ensure that they aren’t trying to charge anything they shouldn’t (eg premises owned by another company), that, if relevant, they aren’t trying to take security over a group of companies and that there is no personal guarantee.
My concerns in a nutshell, bearing in mind I worked through the whole HSBC shut your account down sAs stated elsewhere read it very carefully to ensure that they aren’t trying to charge anything they shouldn’t (eg premises owned by another company), that, if relevant, they aren’t trying to take security over a group of companies and that there is no personal guarantee.
t I don't trust them as far as I can throw them.We do currently have some small funding with them without PGs, £10k in total (£8k over-draught and £2k credit cards both not used).
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