Cross-Collateralisation
Every asset being security for every loan.
We certainly take a view that’s not the way to do things wherever possible. Accountants and Lawyers do a great job of setting up trust and company structures to keep everything secure from creditors, but then everything gets tied up with one bank and all of a sudden that asset protection can really go down the gurgler if the bank pulls the pin.
Communication with your Bank or Lender
Having a long-term strategy that is clearly articulated is very valuable.
As a former Bank Credit Manager, PC’s view is that whenever he would get a file on his desk every couple of weeks or months, it really did sow the seed of doubt around the strategic direction of the business and the ability of those people to manage the business.
If this rings true for your situation, get in touch and let’s discuss what risk you’re in – and more importantly – how it might be possible to de-risk that position.
