Private Debentures Offer Safeguards To Directors
Directors and owner managers today often place their own personal money at risk without a second thought, and usually on an unsecured basis.
They are also often required to either inject new funds into their company, or leave in money owed to them, for the sake of cash flow issues.
Following research by The Ludgate Partnership, a leading business advisory firm based in Birmingham, help is now at hand for all directors
They have found that over 90% of directors contacted did not have any systems in place to safeguard their money in the event of financial difficulties of their company.
To help address the issue, The Ludgate Partnership has recently launched a new 'Private Debenture' service, offering directors the ability to 'ring fence' their investments.
All too often the firm has found that repayments to directors are in fact one of the last considerations when a company enters hard times.
Martin Coyne, managing director at The Ludgate Partnership commented, "A private debenture is quite simply a legal document that secures directors investments, and gives them an improved measure of control over the future decisions of their company.
"Our research confirms that this facility is rarely considered by directors, and yet given the potential serious consequences, it really should be placed on a par with security readily given to other lenders to their busines.
"A private debenture can also sit very comfortably with other debentures that may already be in place to other lenders.
"I would urge directors of all sized companies to consider the 'Private Debenture' route as a very significant and necessary option, and a very cost effective insurance policy too."
Additional information may be obtained by contacting Louise Gumery on 0845 071 0854.