Personal Finance. Money. Investing.

When buying a house, you will have to take out a mortgage loan from a bank or building society of your choice such as Lloyds, Barclays, Nationwide, NatWest Bank and more. It is overwhelming to wade through all the jargon and information so this is a short guide on the different types of mortgages that you could take on.

You will have to pay back your mortgage loan plus interest to the bank or building society by the end of your term which you decide on, this could be 2 years, 5 years or more.

Fixed Rate

Tracker Mortgage

Discount Mortgage

Interest only Mortgage

Factors to consider when deciding which one is best for you

A new mortgage model will soon become available in the UK called the Dutch-Style Mortgage which could make it more affordable for people to take out mortgage loans.

Taking out a mortgage loan is the biggest financial commitment you can make so it is important to have all the information and to shop around for the best deal for what you need. You can use sites to compare different deals making it simple such as Compare the Market.

You can use a mortgage calculator to determine how much you can afford to borrow without accumulating debt and getting yourself into a bad situation. This will take into account your salary and how much you have for your deposit. It is important to take into account other factors such as your existing debt, you’re spending and how much the deposit will be, so don’t get caught out.

Advancements in financial technology combined with economic and political pressures have compelled global trade organizations to seek innovative strategies for managing trade credit risk and short-term commercial liquidity needs across borders.

From the proliferation of distributed ledger platforms and supply chain financing networks to reforms in trade policy, this period of disruption has also brought new opportunities for businesses engaged in cross-border commerce.

In this post, we will examine several modern trade finance mechanisms that have emerged as popular solutions for facilitating global trade transactions with improved access, transparency and risk management capabilities compared to traditional methods.

Origins and Evolution of Trade Finance

If you ever wondered what is trade finance, simply put trade finance refers to the financial instruments and services that are used to facilitate international trade between businesses, especially in cases where there is a lack of trust or familiarity between trading parties. The concept of trade finance has evolved significantly over time, reflecting the changes in global commerce and advancements in technology.

The origins of trade finance can be traced back to ancient civilizations such as Mesopotamia and Egypt, where traders relied on primitive forms of settlement mechanisms, bartering goods for other goods or commodities. As trade routes expanded and merchants began conducting business with distant partners, letters of credit were introduced as a way to mitigate risk and guarantee payment for goods being shipped.

In recent decades, globalization has led to an even greater demand for efficient means of conducting international business transactions. With increased competition in global markets and challenges posed by currency fluctuations, new forms of trade finance have gained prominence.

Moreover, advancements in technology have further transformed how we conduct trade finance today. Electronic platforms now offer convenient ways for businesses to apply for loans or issue credit guarantees without having to go through traditional cumbersome processes.

In conclusion, it is evident that what we know today as "trade finance" has come a long way from its humble beginnings. From primitive forms of bartering to modern banking systems and now digital platforms, trade finance has adapted and evolved with the changing landscape of international trade.

Key Models and Mechanisms

Letters of credit (LCs) are one of the oldest and most popular trade finance instruments. They provide a guarantee to sellers that they will receive payment as long as they fulfil the agreed-upon terms of the transaction. LCs work by involving two banks: an issuing or opening bank, which acts on behalf of the buyer to issue the LC; and an advising or beneficiary bank, which provides notification to the seller once it receives the LC.

Factoring is another widely-used form of financing in international trade. It involves selling accounts receivable (invoices) at a discount to a third-party called a factor. Factoring allows businesses to obtain immediate cash flow by converting their sales on credit into cash before actual payment is received from buyers.

Lastly, forfaiting is often compared with factoring due to its similar nature; however, there are some significant differences between them. Forfaiting differs from factoring in many ways but primarily because it deals with open account transactions rather than documentary credits like LCs or bills of exchange commonly used in factoring arrangements. Essentially, forfaiting involves purchasing medium- or long-term receivables arising from export contracts without recourse against exporters' default risk.

Risk Assessment and Mitigation

Risk assessment and mitigation are vital components of trade finance, as they help banks and other financial institutions manage potential risks and ensure the successful completion of international transactions.

Credit risk refers to the potential loss that a bank may face if a borrower fails to fulfil their financial obligations. When engaging in international trade, banks must carefully evaluate their clients' creditworthiness before issuing any form of financing.

Country risk involves assessing the potential for loss due to economic instability or political unrest in a particular country. In today's globalized world, it is not uncommon for businesses to engage in cross-border trade with countries facing instability or conflicts.

Strategies for Mitigating Risk:

Insurance: Banks may opt for insurance coverage against losses arising from non-payment or default by borrowers.

Guarantees: Banks can issue guarantees on behalf of their clients guaranteeing payments from buyers.

Securitization: This method involves pooling together various trade finance transactions and then issuing securities backed by these pools, thus spreading the risk.

Future Outlook

One key aspect that will shape the future of trade finance is regulatory changes. With an increased focus on transparency and risk management, governments are implementing stricter regulations to mitigate financial risks and safeguard against fraudulent activities. This will ultimately lead to a more secure and efficient trade environment.

Furthermore, integrated platforms are set to revolutionize the way trade finance operates in the coming years. With the use of blockchain technology, all parties involved in a transaction can securely share information and documents in real-time. This not only increases efficiency but also reduces costs associated with traditional paper-based processes.

In conclusion, it can be predicted that over the next few years, we will witness significant transformations within the realms of globalized trade due to advancements in technology coupled with regulatory changes aimed at creating a more secure trading environment.

Securing a job in the equity industry is highly competitive, especially considering the depth of private equity interview questions. Private equity firms assess candidates based on more than just their intelligence. They look for individuals who can navigate situations, understand the value of assets, and think strategically, skills that are often tested in private equity interview questions. Therefore, preparing for the interview is crucial to stand out as a potential candidate.

Private equity interviews are like evaluations that require you to showcase your ability to analyse financial strategies, demonstrate familiarity with various valuation methods, and discuss strategies aligned with the company's goals. Adequate preparation involves acquiring knowledge about finance and understanding the characteristics and driving forces of the private equity firm you aspire to work for.

Preparing for an equity job interview requires proficiency in financial discourse and understanding the unique aspects of the company you're interested in. Learn more about key strategies for acing your private equity job interview with our top 7 preparation tips. Master equity interview questions, case studies, and more.

1. Research The Firm and The Position

Before your interview, dedicate some time to researching the equity company you will be meeting with. Gain an understanding of their investment strategy portfolio companies and recent transactions. Gathering this information demonstrates your enthusiasm for the organisation and allows you to tailor your answers to their specific focus areas. 

Additionally, dive into the details of the position you're applying for. Understand the responsibilities, required skills, and qualifications. Anticipate relevant interview questions that may come up. This could cover technical, behavioural and strategic aspects of the role. This understanding will enable you to discuss how your expertise and abilities align with the role, creating a positive impression on the interviewer.

2. Enhancing Technical Skills for Equity Interviews

Private equity interviews often include modelling, valuation and investment analysis questions. Therefore, it's crucial to review these areas before the interview. Take time to revisit concepts like discounted cash flow (DCF) analysis, valuation methods using multiples and analysing statements. Be prepared to discuss investment strategies such as buyouts, growth equity investments and distressed investing. Understanding these concepts will give you an edge during the interview.

3. Prepare for Case Studies

Case studies are commonly used in equity job interviews. These assessments analyse your ability to evaluate investment opportunities and make decisions. You should practice solving similar case studies to excel in the interview. Finding case studies covering various industries and investment scenarios would also be beneficial. 

It is essential to take note of the factors that influence investment decisions and various valuation methods. Additionally, practising how to present your analysis and recommendations in an organised manner is crucial. The more you practice, the more confident you will become during the interview.

4. Be Ready to Discuss Your Experience

During equity interviews, interviewers want to understand your experience and how it relates to the position you are applying for. Being ready to talk about your achievements and contributions in positions or internships is important. 

Highlight situations where you have demonstrated skills, financial modelling expertise and due diligence abilities. Share examples of transactions you have been involved in or instances where you have added value to portfolio companies. By emphasising experience, you can showcase your skills. Convince the interviewer of your potential for success in the private equity industry.

5. Develop a Compelling Story

Interviewers often ask candidates about their backgrounds and career aspirations. Crafting a story that connects your experiences and interests to the equity industry is important to differentiate yourself from others.

Consider the reasons that have driven you towards pursuing a career in equity, such as your involvement in deal-making, your fascination with analysing business opportunities or your keen interest in the markets. Present your narrative concisely and engagingly, showcasing your passion for this industry.

6. Network with Industry Professionals

Networking plays a role for those aspiring to enter the equity field. Building connections with established professionals can provide insights and potential referrals. 

Attending industry events using networking platforms and conducting interviews with experts are effective strategies to expand your knowledge and demonstrate your commitment during interviews. Learning and advancing your career can be achieved through networking and insightful discussions.

7. Showcase Your Deal Experience

If you have experience working on deals through internships, academic projects or previous positions, be prepared to explain them. Emphasise your contributions throughout the deal process, mainly focusing on diligence, financial modelling, and effective execution.

Make sure your contribution is clear by demonstrating how your efforts improved the team and ultimately led to the deal's success. Use examples to demonstrate your problem-solving skills and ability to overcome challenges.

Final Thoughts

Combining analysis, technical expertise, practice, and networking in the private equity field is crucial to preparing for an interview effectively. These seven suggestions will increase your chances of leaving an impression on interviewers and securing your desired position in the equity sector. Best of luck!

For the latest finance trends, news and advice, visit


MWA Financial, an Independent Financial Advisor consolidation platform, has secured a significant growth capital investment from Coniston Capital to fund their acquisition strategy.

MWA Financial has already acquired five IFA businesses and has combined total Assets Under Advice of around £450 million. With this investment, the fifth from Coniston Capital, and three further acquisitions planned in the next year, MWA Financial will become a major IFA market player and wealth management practice in the UK.

MWA Financial was advised by Brachers. Coniston Capital was advised by Stephenson Harwood, HW Fisher, and Mazars.

The Client Relationship Consultancy (CRC) advised both MWA Financial and Coniston Capital.

Coniston Capital is a private equity firm that invests in UK based SMEs that require a partner to facilitate a change of ownership and help deliver their growth plans.

MWA Financial provides independent financial advice. Having developed financial advice platforms for major organisations in Australia for over 25 years, the company is set to recreate its holistic advice model in the UK. MWA Financial is chaired by Ed Rosengarten, with Cam Banks leading the management team.

CRC is a pioneer in B2B relationship intelligence. It delivers a scalable mechanism for customer feedback and strategic relationship management that defends the business against risk, uncovers opportunities, and drives growth.

Q&A with Emma Hillary, Consultant at CRC

Q: What was your involvement and responsibilities in this project?

Our role was to assist with due diligence on the potential investment deal by evaluating MWA Financial’s customer relationships.

Traditionally, due diligence looks at the financial, legal, and commercial aspects of a business. The problem is — you may see great numbers today, but if it turns out that 40% of

clients are unhappy and about to terminate the relationship, the investor won't get the ROI they're looking for.

That’s where the fourth pillar — Relationship due diligence — comes in. It assesses a company’s client relationships. We delivered that using our core service, TRR (The Referral Rating). It’s a scalable B2B customer feedback mechanism that consists of a strategically formulated two-question survey and in-depth client feedback analysis.

The customer rating and feedback we received was then analysed using our many hundred industry and business relationship benchmarks, NLP, and behavioural science.

MWA Financial received strong TRR results — an undeniable proof of the value of the business and the strength of the investment. More than that, the data and insights we gathered also allowed MWA Financial to reflect on their strengths and identify a clear path for improvement that can secure better ROI, sooner.

Q: What was the specific process you followed and how did you make sure both businesses are supported equally?

The core of our due diligence service is outcome-focused simplicity.

To gain a 360 view of the health of MWA Financial’s account, we surveyed key contacts across roles, seniority levels, and by advisor. We started by understanding the make-up of MWA Financial’s client base and determining who to survey, in order to tailor our analysis to what Coniston Capital was looking for and what MWA Financial would find most useful.

After the completion of the database and finalising the survey communication, we launched a two-week email survey period to gather feedback. The survey takes between 20 seconds and 2 minutes to fill out, which helps us secure higher than industry average response rate, exceeding 60%.

A few days after closing the survey, an assessment of MFA Financial customer relationships was complete.

We wanted to make sure each party received focused attention, so I held two executive review sessions, one with Coniston Capital and one with MWA Financial to discuss their TRR results in depth, share relevant industry benchmarks, and provide objective analysis of what the qualitative and quantitative data reveals.

Q: How exactly did your specialised knowledge of client relationships help in this project?

A key part of translating client feedback correctly is distinguishing between the relational and transactional factors of a relationship.

It’s no surprise that, if left untreated, transactional factors like timeliness, attention to detail, or efficiency can have a negative impact on the relationship. But what most businesses don’t realise is that relational factors, such as client service, understanding, and the ease of working with you are often the root cause of complaints around transactional matters.

That’s why relationships remain one of the most powerful and most underutilised levers for commercial growth.

With 19 years worth of data and hands-on experience, we can identify untapped opportunities and spot the early warning signs of looming relationship and commercial risks. Speaking from experience as a consultant, we have helped global and local businesses work through nearly every possible scenario in client relationships, which means we’re able to identify the strategies that will be most effective in each case.

To a business like MWA Financial, this gives complete visibility of the health of their client accounts and a partner who’s there to provide support in building high-performing relationships.

To a private equity fund like Coniston Capital, this means an investment with the potential to see ROI faster.

Q: What were the challenges you faced in this project?

From the start, both MWA Financial and Coniston Capital were invested in facilitating the evaluation of MWA Financial’s client relationships and identifying any potential risk as quickly as possible. That significantly helped the process.

The timings of the investment and the need for quick visibility meant that we were surveying MWA Financial’s clients in August. Traditionally, this is a period to avoid due to holidays and slightly lower response rates. However, not only did we manage to get the survey out in just over a week, but we also didn’t see a significant dip in response rates.

What’s more, MWA Financial’s TRR rating and level of client advocacy was above the norm — a tribute to the relationship focus their advisors exhibit.

Q: What are the next stages for CRC?

We’re looking forward to continuing working with MWA Financial to help them grow and expand and, by extension, allow Coniston Capital to see a greater return on their investment.

Additionally, 2023 has brought a lot of exciting developments here at CRC.

We’ve grown to 100+ consultants, data scientists, and software engineers across five continents.

The customer feedback we’ve analysed this year has come to nearly 750 thousand responses across more than 90 markets. We’ve also received ISO 27001 re-certification and released an API and a mobile app.

But what’s particularly exciting is our investment in new technology that will blend customer feedback analysis, two decades of industry benchmarks, and complex NLP and AI-powered client sentiment analysis at speed. This will provide companies like Coniston Capital and MWA Financial with an even better visibility of business relationships and in-depth evaluation of commercial risk and opportunity to inform their due diligence and growth strategy.

We’ll be sharing more details on the new products next year.

Q: How can companies reach you if they have more questions?

For more information, you can email me at or visit our website

They are a valuable tool that can help you manage your finances, understand your spending habits, and make informed financial decisions.

This article will explore eight effective ways to get the most out of your monthly bank statements and the data they provide to become a better money manager.

Convert Bank Statements to CSV for Advanced Analysis

For a deeper analysis of your finances, convert bank statements into CSV format. Many banking platforms offer the option of downloading monthly bank statements in CSV.

If yours does, consider doing so because CSV provides a versatile data format compatible with spreadsheet software like Microsoft Excel or Google Sheets. By making this simple switch, you open up opportunities for more in-depth analysis.

CSV files allow you to customize and categorize transactions according to your preferences, offering a more granular view of your spending patterns. The CSV approach is advantageous, especially for individuals who prefer detailed insights and wish to create personalized financial charts and graphs. 

Additionally, the CSV format seamlessly integrates with various financial tools to give you a more holistic approach to managing your money.

Check your bank’s online portal for instructions on downloading statements in CSV, but if your bank does not have that option, use tools like DocuClipper to convert PDF bank statements into CSV to unlock a new level of precision and control in your financial analysis.

Understand Transaction Categories

Understanding transaction categories on your bank statements is a pivotal aspect of gaining comprehensive insights into your financial habits. These statements systematically categorize transactions into distinct groups that delineate expenditures like groceries, entertainment, utilities, and more.

By scrutinizing the distribution of expenses across these categories, you can pinpoint areas where you might be exceeding your budget or identify sectors where you can exercise prudent cutbacks.

Ultimately, meticulously analyzing transaction categories empowers you to make informed decisions and foster financial discipline and strategic planning that could significantly help you achieve long-term financial goals.

Track Changes in Your Balances Over Time

Monitoring the evolution of your account balances over time, as documented in your bank statements, offers a valuable lens into your financial history. Tracking these changes lets you discern patterns and trends in your financial behaviour and provides a comprehensive overview of your monetary habits.

This practice becomes especially advantageous when detecting irregularities or unexpected fluctuations in your balances. Understanding the reasons behind these variations gives you the power to make informed financial management decisions.

Moreover, this historical perspective enhances your financial literacy and equips you to be proactive and deliberate about planning for future expenses or savings goals.

Use Budgeting Tools and Apps

Using the native budgeting tools and apps available from most banking institutions can significantly enhance your financial management. These digital aids seamlessly complement your monthly statements by providing intuitive features and visual representations of your spending.

The graphical interface employed by most of these apps and tools makes it effortless to understand your financial situation from just a glance; they also offer a holistic view of your expenditures. By embracing these technologies, you can set precise financial goals, monitor your progress, and receive tailored insights from your spending patterns.

Some advanced apps even incorporate predictive analytics, enabling you to anticipate future expenses. This foresight empowers you to make proactive financial planning that lets you stay one step ahead and make informed decisions that promote your financial well-being.

Use Your Statement to Automate Savings and Bill Payments

Transforming your bank statements into a strategic resource can help you leverage them to automate savings and bill payments for seamless financial management.

Use the details in your statements to establish automatic savings account transfers immediately after each payday to create a hands-free approach to building a financial cushion.

Simultaneously, capitalize on online bill payment services to automate regular payments for essential expenses like rent, utilities, and subscriptions. Automating such payments guarantees that you never miss a payment, drastically reduces the risk of incurring late fees, and fosters financial discipline.

By incorporating these automated processes into your financial routine, you can turn your bank statements into a catalyst for a consistent savings habit and a stress-free approach to meeting your financial obligations and goals.

Monitor Interest and Fees

Banks often impose various charges, including maintenance fees or overdraft charges, while also providing interest on certain accounts. Regularly reviewing your bank statements lets you stay informed about these fees and interest payments and creates transparency in your financial transactions.

After noticing unexpected charges, promptly contact your bank for clarification. Taking such a proactive approach helps you understand the financial landscape and empowers you to make informed decisions that minimize fees and optimize interest earnings over time.

By keenly monitoring these aspects during regular bank statement reviews, you can ensure a financially astute and cost-effective approach to managing your accounts.

Compare Statements to Your Budget

Your bank statements are a real-time reflection of your spending habits, and by periodically comparing these actual expenditures to your budgeted amounts, you gain invaluable insights. This dynamic practice enables you to identify deviations when they happen, which allows you to make informed adjustments to your future spending.

Comparing your bank statements to your budget plan transforms budgeting from a static plan to a fluid and responsive process that allows you to fine-tune your budget based on real-world financial behaviour. The synergy between your budget and bank statements ensures that your financial goals remain realistic, achievable, and adaptable to the ever-changing dynamics of your economic life.

Explore Additional Services and Rewards

Take the time to explore these opportunities and maximize the benefits your bank has to offer. Your statements may provide insights into cashback rewards, exclusive discounts on specific purchases, or special promotions for account holders.

Staying vigilant of these perks ensures you fully capitalize on your banking relationship and the overall value derived from your financial institution.

Whether it is uncovering hidden discounts or seizing exclusive offers, being aware of these supplementary services embedded in your statements empowers you to make the most informed decisions and extract optimal value from your banking experience.


By consistently reviewing and leveraging the information in your monthly bank statements, you can gain valuable insights into your spending habits, identify concern areas, and make informed decisions that align with your financial goals. 

The good news is that understanding how to manage your finances effectively is an art that can be learned and perfected. The best part is, it isn’t any difficult. 

This practical guide takes you through the landscape of financial management for physicians in 2023, covering everything from crafting an emergency fund to the significance of retirement planning.

The Foundations of Personal Finance

Understanding the foundations of personal finance is one thing all physicians should know in 2023. Often, this starts with building an emergency fund and reducing high-interest debts. 

Having an accessible emergency fund helps protect your earnings under unforeseen circumstances that life may throw at you. Additionally, it's critical to minimize debts, particularly credit card payments. 

On the other hand, high-interest rates can quickly magnify what you owe, which threatens your overall financial health. So, ensure you prioritize these two fundamentals if you’re looking to set the stage for robust financial stability in 2023 as a physician. 

Investing Strategies and Balancing Risk

In 2023, physicians should also aim to comprehend investing strategies and the concept of balancing risk. 

Diversification is a crucial consideration when investing your money. It implies spreading out investments across various asset classes (such as equities, bonds, and real estate), which can decrease the impact of poor performance from any particular investment type. 

Furthermore, strive to maximize your tax-efficient investment strategies by making wise use of registered retirement savings plans or tax-free saving accounts. These approaches enable you to accrue additional income while evading heavy taxation. Remember, the key here is finding a balance – one that aligns with your specific financial situation and risk tolerance. 

Insurance and Risk Management

Discovering the role of insurance and risk management in safeguarding your finances is another significant learning point for physicians in 2023. 

Having sufficient income protection coverage could be essential if you encounter situations like accidents or illnesses that prevent you from earning a regular income. Regularly reassess your financial needs as they progress over time, adjusting your insurance coverage to match these changes. 

The good thing about managing potential risks through insurance is that you can ensure a level of financial safety amidst life's unpredictability. However, you must note that this part of financial management is all about preparation, so equip yourself today to face the unexpected turns of tomorrow with confidence. 

Harness Technology for Streamlined Processes

With physicians often juggling their clinical responsibilities and personal finances, streamlining processes with Foothold Technology software or any other care coordination platform becomes increasingly critical in 2023. 

The best thing about integrating such tools into your daily operations is that you can effortlessly consolidate all care-related activities onto one accessible platform. Additionally, such incorporation optimizes workflow, bolsters efficiency and helps save a considerable amount of time that you can spend focusing on other financial management aspects. 

Retirement Planning

Equally important in your financial management journey as a physician in 2023 is the concept of retirement planning. While caring for others, it's easy to neglect yourself and miss out on making appropriate provisions for your golden years.

Although you may be passionate about practising medicine now, there will be a day when relaxation might sound more appealing than work. Setting aside significant savings specifically dedicated to your retirement ensures that those days can be lived stress-free without worrying about financial stability.

Start early, invest wisely, and create long-term monetary goals to ensure you're prepared when it's time to bid farewell to the world of active service while leaving no room for regrets or uncertainties. 

Professional Financial Advice

Finally, as you aim to master financial management in 2023, remember there’s no harm in seeking professional help. Circumstances may arise confusing enough to warrant advice from a certified financial planner, particularly complex matters like tax planning or estate management.

Professionals can lend expertise to help navigate the intricacies of financial decisions and offer customized strategies catered to your unique situation. They can provide perspective on risk assessment and infuse confidence about your choices, making your journey towards better financial control less daunting.

So, while it's vital to educate yourself about personal finances, don't shy away from expert opinion when necessary. It might just be the springboard you need for financial success. 

Dentons Rattagan Arocena advised the Mobivia group in the sale of 100% of the shares of its Argentine subsidiary Norauto Argentina SA to the Stellantis Group. The sale is scheduled to be carried out in two tranches, with 90% of the shares being transferred in July 2023 and the remaining 10% within one year from initial closing.

They aim to ensure a smooth process for all parties involved to guarantee stability for customers and firms alike.

Norauto Argentina SA is a leading company in automotive maintenance and specialises in sales of tires, car accessory parts and services to vehicles. Norauto was founded in France in 1970 and has since expanded internationally as part of the Mobivia Group.

Mobivia is a French company with presence in 11 countries,  committed to sustainable mobility and has been working with users since its inception creating mobility solutions and local support. They resource options for carbon-free, healthy, and safe mobility that can be accessible to all.

Stellantis is a leading multinational automobile group comprising 14 automotive brands and two mobility arms. It possesses industrial operations in more than 30 countries and sells to customers worldwide.

Dentons Rattagan Arocena, through a team led by partner Roberto P. Bauzá, provided legal advice to Mobivia in corporate, contract negotiation, labor and tax matters, among other aspects of the transaction.



You might borrow money from a close friend or relative, take it out of your retirement account, or dive into your savings. Getting a personal loan is another popular method of obtaining additional funds. This loan can be used for various needs, from debt consolidation to wedding financing.

Although personal loans are very common, many people are still not familiar with all their ins and outs. So, what is the benefit of obtaining a personal loan? And are there some considerations regarding them? Let's find out.

What Is a Personal Loan?

A personal loan is a lump sum deposit a borrower gets into their bank account from a bank, credit union, or online lender. Then, the money recipient needs to repay it with interest in affordable monthly payments, usually within up to 60 months.

Most personal loans are unsecured, which means you can apply for one without putting up any security. Furthermore, these loans rank among the least expensive solutions available without a set objective. To get personal loan funds at a reasonable interest rate, you must, however, have a strong credit score.

How Much Can You Borrow with a Personal Loan?

The typical personal loan amount is between $2,000 and $50,000. The exact sum an applicant can get depends on their solvency and creditworthiness, as well as the state of residency and the limitations set by the specific lender. Whether you are requesting a $20,000 or $5,000 personal loan, lenders want to know they will get their money back. Thus, loan providers base their maximum loan amount calculations on the applicant's income, credit history, and debt-to-income ratio.

Personal Loans: Pros and Cons

Knowing the major personal loans pros and cons can contribute to your pleasant borrowing experience. Learn them carefully to make the right financial decision and avoid abruptness.

Advantages of Loans for Personal Needs

The key advantages of loans for personal needs include the following:

No Specific Loan Purpose

A personal loan lender doesn't restrict you in the way you can use the loan proceeds. Thus, you can apply for a loan even if you don't know yet what you're going to spend the money on. It may be quite convenient if you need money for wedding or vacation expenditures and can't say what expense category will be covered with the borrowed amount ahead of time. Other popular personal loan uses include debt consolidation, home renovation, medical expenses, college tuition costs, and much more.


Personal loans can be repaid within 12 to 60 months. Feel free to choose the loan term that fits your budget. Your monthly payment will be less the longer your payback time is. Conversely, a shorter loan term will save you a lot of money on interest while also resulting in a larger payment. You can use a simple loan calculator to identify the optimal loan duration and monthly payment.


When it comes to personal loans, there's nothing that comes as a surprise. This form of borrowing usually has fixed monthly payment amounts and interest rates. This means that the sum you pay will be the same within the whole loan life. With a predictable monthly payment, it becomes much easier for you to plan your budget.

One Lump Sum Payment

A personal loan lender will transfer the entire loan amount to your bank account in one lump sum. Thus, it becomes more convenient to finance a major purchase, cover unexpected expenses, or pay for vacation compared to a credit card or line of credit. The borrowed amount then needs to be repaid in equal monthly payments, so personal loans don't put much stress on your budget.

Credit-building Options

If you're looking for an option that will stimulate your credit score growth, a personal loan is one of them. All you need to succeed is to make consistent on-time payments. Each time you stick to your repayment schedule, a lender reports it to three major credit bureaus. This demonstrates your responsible financial behaviour. Your credit score boosts over time, increasing your chances of getting favourable interest rates on financial products in the future.

Affordable Interest Rates

Personal loan rates are typically lower than those for credit cards or short-term loans. You can get between 5.99% and 35.99%, depending on your credit score, state, loan type, and the particular lender. As of October 2023, the average personal loan rate is 11.47%. For comparison, the same figure for credit cards is 28.17%. Reduced borrowing costs allow you to save money in the long run by paying less in interest to a lender.

Higher Loan Amounts

Lenders offering personal loans usually set a higher borrowing limit compared to regular credit lines or cash advance loans. You can typically get from $2,000 to $50,000, with some options reaching $100,000. The exact maximum sum depends on your gross monthly income, credit score, and debt-to-income ratio.

Fast Funding Times (For Some)

As the lending market evolves, some personal loan companies can provide you with money in as little as one business day. Thus, a personal loan can be a great emergency solution if you deal with the right moneylender.

No Collateral Needed

In most cases, personal loans don't require collateral. This makes them safer for a borrower. Even if your financial situation changes, adding some difficulties to making your loan payments on time, you don't put any of your assets at risk.

Some Disadvantages of Personal Loans

While personal loans can be a great ally in reaching your financial goals, there are some considerations regarding them, too. First of all, personal loans usually have strict credit score requirements. Traditional lenders are more likely to offer lower interest rates to borrowers with good and excellent credit. Otherwise, you can get an interest rate of as high as 35.99% or even be denied a loan.

Also, personal loans often come with extra charges that can potentially affect their total costs. The most typical ones include late fees, prepayment penalties, and origination fees. Your loan agreement must include a detailed explanation of all rates and costs, so you should carefully read it before signing. Take extra care to read the fine print and confirm that you know exactly what you can be charged for.

Additionally, personal loans carry potential risks to your credit history. Although they can help you build credit, things can get worse, too, if you pay late or miss your payments. On top of that, personal loan lenders commonly make hard credit inquiries to evaluate your creditworthiness. Therefore, your credit score will temporarily go down by a few points after you apply for one.

Best Alternatives to Personal Loans

There's no single answer, as you're the only one who can decide what option will be the best for you. The right choice depends on your particular circumstances, credit score, and current preferences. If you're looking for an alternative to an unsecured personal loan, options like credit cards, peer-to-peer loans, 401(k) loans, and borrowing from your family can fit.

Opting for a lower interest rate or having a bad credit score? Consider secured personal loan alternatives. The most common ones include home equity loans, home equity lines of credit, and cash-out mortgage refinancing. But be cautious before obtaining a secured loan. Although with, say, a home equity loan, you can qualify for a higher loan amount at a lower rate, it also comes with the risk of losing your property.

Note: Try to avoid short-term, high-interest debt. Options like payday loans or auto title loans can be tempting due to their accessibility but should only be used as a last resort in case of small emergencies.

When Getting a Personal Loan Is a Good Idea?

Personal loans can be a perfect fit if you need to get a high amount on hand without bothering your savings account balance. It can also help you finance large purchases or obtain something that you need right away without setting the money aside. Finally, getting a personal loan can be a great idea if you want to cover other costly debts and reduce the financial burden you carry.

However, it's crucial to make sure you can afford this potential debt before obtaining it. Here are some questions to ask to figure out whether a personal loan is the right option for you:

  1. What is my credit score? The best offers are usually given to borrowers with higher credit.
  2. Can I stick to my loan payment schedule? Make sure you can cover your debt payment obligations without delays in advance.
  3. Will I have enough money left for my current needs after making the monthly loan payment? Pay attention to the amount that will remain after you make your loan payment, and make sure it corresponds with your regular monthly expenses.
  4. Are there cheaper alternatives available? Shop around for other options and compare various offers to choose the one with the best rates and terms.

Final Thoughts – What Is The Major Personal Loan Benefit

A personal loan can help you get the funds you need relatively quickly and use them on any needs and goals. Although there are many benefits of loan options for personal needs, the major one lies in their affordability. It becomes possible due to their lower interest rates and flexible repayment terms that each borrower can adjust to their particular situation.

However, a personal loan is still the amount you borrow and need to repay on schedule. Additionally, you will be required to meet the lender's minimum credit score requirements to qualify or get favourable loan conditions. Therefore, you need to approach it responsibly and weigh all the pros and cons before going into debt.

For many students in India, education loans become an essential financial tool to fund their academic aspirations. While these loans can make education accessible, they also bring about a crucial financial responsibility. One aspect that students, graduates, and those in the job market need to navigate is the impact of education debt on their credit scores, often represented by the CIBIL score. In this article, we'll explore the relationship between education loans, CIBIL scores, and how to manage them effectively.

Understanding the Link between Education Loans and Credit Scores:

Before we delve into the practical aspects of managing education loans and credit scores, it's important to understand the connection between these two financial elements.

Education loans are a financial lifeline for students aiming to pursue higher studies in India or abroad. These loans cover tuition fees, accommodation, books, and other education-related expenses. They offer favourable terms and flexible repayment options, making education accessible to a broader segment of the population.

Credit scores, represented in India by the Credit Information Bureau (India) Limited (CIBIL), are numerical representations of an individual's creditworthiness. These scores are generated based on credit-related activities, including loans, credit card usage, and repayment history. Credit scores in India typically range from 300 to 900, with higher scores indicating better creditworthiness.

The Impact of Education Loans on CIBIL Scores:

Education loans can have a significant impact on your credit score, and how they affect it largely depends on your management of these loans.

When managed responsibly, education loans can have a positive impact on your CIBIL score. Here's how:

1. Establishing a Credit History: Education loans may be one of your first significant credit experiences. Timely repayment of education loans helps establish a positive credit history, which is essential for building a strong credit score.

2. Demonstrating Responsibility: Consistent, on-time payments on your education loans reflect financial responsibility, which is a factor that positively influences your credit score.

3. Diverse Credit Portfolio: Having a mix of different types of credit, such as education loans and credit cards, can contribute to a well-rounded credit profile and potentially enhance your credit score.

Mismanagement of education loans can also lead to a negative impact on your credit score:

1. Late Payments: Missing education loan payments or making late payments can harm your credit score. Timely repayment is crucial for maintaining a healthy credit profile.

2. Defaulting: If you default on your education loans, it can severely damage your credit score. A default is a red flag for lenders and can make it difficult to secure future loans or credit cards.

3. High Debt-to-Income Ratio: Accumulating significant education debt without the means to repay it can result in a high debt-to-income ratio, which can negatively impact your credit score.

Managing Education Loans and Credit Scores Effectively:

Now that we've established the link between education loans and credit scores, it's essential to know how to manage both effectively. Here are some key strategies:

1. Timely Repayment:

One of the most critical aspects of managing your education loans is making timely repayments. Ensure that you are well aware of the repayment schedule and have a financial plan in place to meet your EMIs (Equated Monthly Installments) consistently. Set up automatic payments if possible to avoid missing due dates.

2. Budgeting:

Create a budget that includes your education loan EMIs. Proper budgeting helps you allocate your finances efficiently, ensuring you have the necessary funds to meet your repayment obligations without compromising other essential expenses.

3. Emergency Fund:

Build an emergency fund to serve as a financial safety net. Having savings can help you manage unforeseen expenses and avoid missing loan payments in case of unexpected financial challenges.

4. Debt Consolidation:

If you have multiple education loans with varying interest rates and repayment schedules, consider consolidating them into one loan with a lower interest rate. This can simplify repayment and potentially reduce the financial burden.

5. Avoid Overborrowing:

While it's essential to secure the necessary funds for your education, avoid overborrowing. Borrow only what you need to cover your educational expenses and living costs. Overborrowing can lead to unnecessary debt and financial stress.

6. Monitor Your Credit Score:

Regularly check your CIBIL score to track your credit health. Many websites and financial institutions offer free or low-cost credit score check services. Monitoring your score allows you to detect any discrepancies or errors and take corrective action promptly.

7. Build a Credit History:

In addition to your education loans, consider other ways to build a credit history. This can include using a credit card responsibly or applying for small, manageable loans to diversify your credit profile.

8. Financial Literacy:

Invest in your financial education. Understand the terms and conditions of your education loans, including interest rates, repayment schedules, and potential penalties for late payments or defaults.

9. Seek Professional Advice:

If you're facing difficulties managing your education loans or have concerns about your credit score, consider seeking professional advice from financial advisors or credit counselling services.

Impact of Credit Scores Beyond Education Loans:

Your credit score has implications far beyond your education loans. It can affect various aspects of your financial life, including:

1. Access to Credit: A good credit score increases your eligibility for credit cards, personal loans, and other forms of credit. It can also result in more favourable interest rates and terms on these financial products.

2. Employment Opportunities: Some employers in India may check credit scores as part of their background check process. A strong credit score can be viewed as a sign of financial responsibility.

3. Housing: If you plan to rent an apartment or buy a house in the future, landlords and mortgage lenders may consider your credit score as a factor in their decisions.

4. Insurance Premiums: Some insurance companies use credit scores to determine insurance premiums. A good credit score can lead to lower insurance costs.

In Conclusion

Education loans are a valuable resource for funding your higher education, but it's crucial to manage them responsibly to protect your credit score. A good credit score opens doors to better financial opportunities and can positively impact various aspects of your life beyond education loans. By making timely repayments, budgeting effectively, and monitoring your credit score, you can navigate the impact of education debt while maintaining a strong credit profile. Remember that responsible financial management is the key to a successful academic and financial future.


In today's rapidly evolving business landscape, CFOs play a vital role in driving profitability and ensuring long-term success. With the advancement of digital technology, CFOs have the opportunity to leverage innovative tools and strategies to optimize financial operations and enhance profitability. This article explores the various aspects of incorporating digital technology in finance and provides insights into how CFOs can harness its potential to drive profitability.

Understanding the Role of a CFO in the Digital Age

The role of a Chief Financial Officer (CFO) has greatly evolved in the digital age. Traditionally focused on financial planning, reporting, and risk management, CFOs now play a strategic role in leveraging digital technology to drive growth and profitability.

In today's fast-paced and interconnected world, businesses are increasingly relying on digital tools and platforms to streamline operations, gain insights, and stay competitive. As a result, CFOs have become key players in navigating the complex landscape of digital finance.

One of the primary responsibilities of CFOs in the digital age is to understand and anticipate digital disruptions in the finance landscape. By staying up-to-date with emerging technologies and market trends, CFOs can proactively identify opportunities to optimize financial operations and enhance profitability.

With the advent of digital technology, CFOs have access to vast amounts of data that can be used to drive informed decision-making. By harnessing the power of data analytics, CFOs can gain valuable insights into customer behaviour, market trends, and financial performance. This data-driven approach enables CFOs to make strategic financial decisions that align with the organization's goals.

The Evolving Responsibilities of CFOs

As digital technology continues to transform the finance function, CFOs are faced with new responsibilities and challenges. In addition to their traditional roles, CFOs are now expected to drive digital transformation and innovation within their organizations.

CFOs are increasingly responsible for evaluating and implementing digital tools and systems that can optimize financial operations, such as cloud-based accounting software, robotic process automation, and data analytics platforms. These technologies streamline financial processes, improve accuracy, and provide real-time insights for better decision-making.

Furthermore, CFOs are now playing a critical role in cybersecurity and data privacy. With the increasing risk of cyber threats and data breaches, CFOs must ensure that their organization's financial systems and data are secure and compliant with regulatory requirements.

To meet these evolving responsibilities, CFOs need to develop digital literacy and stay abreast of the latest technological advancements in finance. Embracing digital technology is crucial for CFOs to drive profitability and maintain a competitive edge in today's digital age.

The Importance of Digital Literacy for CFOs

Digital literacy is essential for CFOs to effectively incorporate digital technology in finance and drive profitability. It involves understanding how digital tools and platforms can enhance financial operations, make data-driven decisions, and identify growth opportunities.

Developing digital literacy requires continuous learning and staying ahead of emerging technologies. CFOs should actively seek opportunities to gain knowledge and experience in digital finance, such as attending seminars, webinars, and industry conferences.

In addition to technical knowledge, CFOs also need to develop soft skills such as communication, collaboration, and adaptability. These skills are vital for effectively leading digital transformation initiatives and driving cross-functional collaboration within the organization.

As the digital age continues to reshape the business landscape, CFOs must embrace the opportunities and challenges that come with it. By embracing digital technology, developing digital literacy, and staying ahead of emerging trends, CFOs can play a pivotal role in driving growth, profitability, and success in the digital age.

The Intersection of Finance and Digital Technology

The intersection of finance and digital technology presents numerous opportunities for CFOs to improve profitability and drive growth. In today's fast-paced and interconnected world, the finance landscape is undergoing a digital revolution that is reshaping the way financial transactions are conducted and managed. This shift towards digital finance has not only resulted in increased efficiency and reduced costs but has also brought about significant improvements in customer experience.

One of the key ways digital technology is changing the finance landscape is through the rise of online banking, mobile payments, and digital currencies. These innovations have made financial transactions more accessible and convenient, allowing individuals and businesses to manage their finances anytime, anywhere. With just a few taps on a smartphone, people can transfer funds, pay bills, and even make purchases, revolutionizing the way we interact with money.

But the impact of digital technology on finance goes beyond just convenience. It has also enabled the automation of routine financial processes, such as invoice processing and financial reporting. By leveraging technologies like robotic process automation (RPA) and artificial intelligence (AI), CFOs can streamline these tasks, reducing the risk of errors and freeing up valuable time for strategic initiatives and value-added activities.

Furthermore, digital technology has facilitated the integration of financial data from multiple sources. In the past, CFOs had to rely on fragmented and siloed data, making it difficult to get a comprehensive and accurate view of the organization's financial health and performance. However, with the advent of advanced data integration tools and cloud-based platforms, CFOs can now have a holistic view of their financial data, enabling more accurate forecasting, better risk management, and proactive decision-making.

Key Digital Technologies Impacting the Finance Sector

Several key digital technologies are transforming the finance sector and have the potential to significantly improve profitability:


Artificial intelligence and machine learning:

 These technologies enable CFOs to automate data analysis, identify patterns, and make accurate predictions for better financial planning and risk management. With AI-powered algorithms (ChatGPT), CFOs can analyse vast amounts of financial data in real-time, uncovering valuable insights and trends that can drive strategic decision-making.


Data analytics:

Advanced data analytics tools allow CFOs to extract valuable insights from financial data, enabling them to identify cost-saving opportunities, optimize pricing strategies, and improve profitability. By leveraging data visualization techniques and predictive analytics, CFOs can gain a deeper understanding of their business performance and make data-driven decisions.



The use of blockchain technology in finance ensures transparent and secure financial transactions, reduces fraud risk, and streamlines processes such as supply chain financing and cross-border payments. By leveraging blockchain's decentralized and immutable nature, CFOs can enhance the security and efficiency of financial transactions, eliminating the need for intermediaries and reducing costs.


Risk management systems:

Digital risk management platforms enable CFOs to analyse and mitigate financial risks in real-time, enhancing the organization's ability to respond to potential threats. By leveraging advanced analytics and real-time monitoring, CFOs can identify emerging risks, assess their potential impact, and take proactive measures to mitigate them, safeguarding the organization's financial stability.


These digital technologies are not only changing the way finance operates but also presenting CFOs with new opportunities to drive growth and profitability. By embracing digital transformation and leveraging these technologies effectively, CFOs can position themselves as strategic partners within their organizations, driving innovation, and shaping the future of finance.

Strategies for Incorporating Digital Technology in Finance

Successfully incorporating digital technology in finance requires strategic planning and careful implementation. The following sections discuss strategies for identifying the right digital tools for your organization and steps to implementing digital technology in finance operations.

Identifying the Right Digital Tools for Your Organization

Before implementing digital technology in finance, CFOs need to evaluate their organization's specific needs, challenges, and goals. This involves conducting a thorough assessment of existing financial processes, systems, and data requirements.

CFOs should collaborate with finance and IT teams to identify digital tools and platforms that align with the organization's objectives and budgetary constraints. It is crucial to select technology solutions that are scalable, flexible, and provide a seamless integration with existing systems.

Furthermore, CFOs should consider the long-term impact of the selected digital tools on profitability and return on investment. Conducting a cost-benefit analysis and seeking input from key stakeholders can help in making informed decisions.

Steps to Implementing Digital Technology in Finance Operations

Once the appropriate digital tools have been identified, CFOs need to develop a comprehensive implementation plan. The following steps can guide CFOs in successfully integrating digital technology in finance operations:


Define objectives and scope:

Clearly define the objectives and scope of the digital transformation initiative, keeping in mind the organization's overall strategy and financial goals.


Engage stakeholders:

Involve key stakeholders, including finance, IT, and other relevant departments, in the planning and implementation process to ensure buy-in and collaboration.


Allocate resources:

Allocate the necessary resources, such as budget, personnel, and infrastructure, to support the implementation and ensure smooth adoption of digital technology.


Train and upskill:

Provide training and upskilling opportunities for finance and IT teams to effectively use the digital tools and maximize their potential.


Monitor and evaluate:

Continuously monitor and evaluate the performance of the digital technology, gather feedback, and make necessary adjustments to ensure its effectiveness in driving profitability.

Measuring the Impact of Digital Technology on Profitability

To evaluate the effectiveness of digital technology in driving profitability, CFOs need to establish key performance indicators (KPIs) and measure the return on investment (ROI) of digital initiatives. The following sections discuss the key KPIs and the evaluation of ROI:

Key Performance Indicators for Digital Technology in Finance

The selection of appropriate KPIs depends on the specific objectives and scope of the digital initiatives. Some common KPIs for measuring the impact of digital technology on profitability include:


Cost reduction: Measure the percentage reduction in finance-related costs, such as processing costs, error correction costs, and labor costs.


Efficiency improvement: Measure the time savings and cycle time reduction achieved through digital tools and automation.


Forecast accuracy: Measure the improvement in forecast accuracy and the ability to proactively identify risks and opportunities.


Revenue growth: Measure the impact of digital initiatives on revenue growth, including increased sales, improved pricing strategies, and enhanced customer retention.


Evaluating the Return on Investment of Digital Technology

To evaluate the ROI of digital technology in finance, CFOs need to compare the costs incurred against the financial benefits achieved. This involves tracking the direct cost savings, revenue growth, and intangible benefits such as improved decision-making and enhanced stakeholder satisfaction.

ROI can be calculated by dividing the net financial benefits by the total cost of the digital initiative and expressed as a percentage. Regular evaluations should be conducted to ensure ongoing alignment with the organization's profitability goals and to identify areas for further improvement.

In conclusion, incorporating digital technology in finance is essential for CFOs to improve profitability and drive long-term success. By understanding their evolving responsibilities, developing digital literacy, and leveraging key digital technologies, CFOs can optimize financial operations, make informed decisions, and identify growth opportunities. By implementing digital tools strategically and measuring their impact, CFOs can ensure that their organizations stay competitive in the digital age.

A Deep Dive into Insolvency and Restructuring with Claire Middlebrook of Middlebrooks Insolvency Practitioners


Claire Middlebrook stands out in the ever-evolving world of insolvency and restructuring with her hands-on experience and unique perspective. Having kick-started her career with Arthur Anderson and eventually launching Middlebrooks, her trajectory speaks volumes about her expertise in the sector. As businesses grapple with financial challenges, Claire’s approach offers a mix of pragmatic solutions and a deep understanding of the landscape. In this discussion, we’ll unpack the latest trends, challenges, and solutions in the insolvency space, drawing from Claire’s extensive experience and the case studies she’s encountered over her career. Join us for a candid and informative conversation.


Claire, thank you for joining us today. Please start by providing an overview of your background in insolvency and restructuring and how you became CEO of Middlebrooks.


I started Middlebrooks in 2015. Previously I had been a partner in a top 50 accounting firm. I wanted to start my own boutique restructuring and insolvency firm that was at the centre of positive futures – and that’s the Vision at the centre of Middlebrooks.

Following university, I immediately entered the accountancy profession in the restructuring team of the then Arther Anderson in Leeds, where I began my training as a Chartered Accountant.

This was an exciting time in restructuring, and we were involved in many global restructurings, from logistics companies to photo printers and everything in between.

The part of my work that I have always enjoyed was speaking to the directors and individuals and helping provide them with a pathway to their own positive future. This generated the Mission of Middlebrooks, to work in a profitable and enjoyable learning team environment, finding a tailored positive future for individuals or companies in times of financial distress.

In 2005 I relocated from Leeds to my home county of Fife and have worked predominantly in the central belt of Scotland ever since. These experiences have allowed me to create a robust professional network up and down the UK and offer solutions across the four home nations.


Middlebrooks Insolvency Practitioners offers a broad range of services, including Company Voluntary Arrangements (CVAs), liquidations, and pre-pack administrations, among others. What trends do you see regarding professional assistance needed, and why do you think this is?


I have now worked in the insolvency and restructuring profession for 22 years, and of late, there is certainly a move towards the use of more formal restructuring processes. I believe that this is due to the more complicated needs of the companies that are coming forwards, but also that there is a greater awareness of what we in the restructuring industry can do.

When companies are facing financial distress, it is often easier to avoid difficult conversations and look to ‘ostrich’. Unfortunately, this then limits options when a process is needed. The current trend of administrations and CVA’s is due to the early intervention of recovery professionals, and in most cases, these cases do provide better outcomes for all stakeholders – including saving jobs.

The other trend currently is the use of CVLs. According to the Insolvency Service, the use of CVL’s (Creditors’ Voluntary Liquidation) in June 2023 was 21% higher than in June 2022. I believe that this trend is directly related to the COVID-19 pandemic and bounce-back loans.


Based on your experience, what are some common signs a business might be heading towards insolvency?


It’s difficult to generalise the signs of impending insolvency as each case can be different.

I have experienced a slow curve into an insolvency event based on declining market share/market conditions and a quick rush, often following a significant incident.

For those companies facing a slow descent, the signs from the outside usually begin with communications slowing down and emails being unanswered when usually the company is communicative. A further sign is being passed between different layers of management with no real resolution, and this often doesn’t need to be solely concerned with money. A general downturn in service standards accompanies the slow descent into an insolvency event – it is likely that management-level staff will also begin to leave.

Any significant incident can trigger an insolvency event – the key to working with these types of companies is open communication; ensuring that your central network of contacts feels able to share news can ensure that the incident doesn’t start a domino effect!


COVID-19 has had a significant impact globally. Specifically in Scotland and, more broadly, the UK, how has the pandemic influenced the rate and nature of insolvencies?


As I mentioned earlier, I am a significant supporter of what the government did during the unprecedented days of the pandemic. Regrettably, I also feel that the can was somewhat kicked down the road.

Prior to the pandemic, low-interest rates and a benign creditor landscape had allowed the much talked of ‘zombie company’ to continue. The pandemic offered a short reprieve for these companies.

Most of the insolvencies we handle within Middlebrooks are those who have suffered at the hands of the pandemic, hospitality, and retail both online and shop front. We treat these people using the legislation under which we operate but also with the Middlebrooks ethos – it’s a difficult time, and we carefully explain all options to the individuals.

That being said, there has been a rise in the number of insolvency cases where there is an element of fraud. Either theft by former directors or misuse of Bounce Back Loans. In those circumstances, we ensure that we can do what we can to gather those funds using the legislation to repatriate funds to the public purse.


What options do businesses have when facing financial difficulties, mainly due to unforeseen circumstances such as the pandemic and, more recently, energy and global commodity prices, particularly as you have experience in agriculture and construction?


Seeking early advice is by far the best way to maximise the best outcome. The key factor in what options are available is where the directors / Board are at in terms of a longer-term future.

Some Board members I have worked with are at the end of their rope. Normally, I am called in after months of stress, and the directors are tired. In those circumstances, I and the Middlebrooks team work to correctly close the business and protect the directors in their fiduciary duties.

In other circumstances where the directors and the Board are up for continuing if contacted at the right time, the range of options is more comprehensive and can be tailored to the circumstances.

This can involve anything from informal arrangements with creditors for debt forgiveness to more statutory arrangements such as administrations or CVAs.

Each of these options has its pros and cons, and it’s our role at Middlebrooks to sit with each company and work through the decision tree to ensure that the tailored solution is found. For example, a company that has prized contracts may benefit from a CVA, whereas the cessation of a limited company and sale to a third party through an administration process may prove the best option to save employee jobs.


Could you describe a particularly challenging case you’ve handled where you were able to help a company successfully restructure?


Over the years, I have had the privilege of working with many companies who have sought my advice at one of the difficult and often private times a company can face.

In one instance, I worked with a London-based firm in the specialist construction industry. This firm was a generational family business with a turnover of circa £20MIL. As with many firms, the initial lockdowns were hard, and coupled with the ill health of the financial director, HMRC debts built up.

In the initial consultation, the executive Board indicated they were tired and wished to give up.

Over the course of the following several weeks, it was discovered that a younger director who didn’t have a full seat on the Board wished to step up. The course of the assignment changed from administration to negotiation with HMRC and the Bank, which had provided a significant Coronavirus Loan.

It has been a great feeling to see those directors over the years and see them save the jobs of more than 200 people.


How can companies prepare and guard themselves against potential insolvency, especially in an unpredictable business environment?


The focus is knowing your business. In the ebb and flow of day-to-day trading, there can be lean months and fuller months. If this is the normal course of trading, then, whilst part of the stress of running a business, it is normal.

As such, really knowing your business does help seek that early intervention, thereby giving you options.

Many businesses will run with a budgeted cashflow, and my first piece of advice would be to ensure that your business has one if you don’t. That is the starting point.

Once your cash flow has been created, you can then run scenarios on the cashflow. For example, what would happen if a major client stopped using your services? Are you too reliant on that one client? Does your business need to diversify? These types of questions can assist in determining whether advice needs to be sought from a restructuring professional.


Given the topicality of the Bounce Back Loan scheme, what advice would you provide to a director who has taken a Bounce Back Loan for legal and legitimate purposes and cannot meet the repayment obligations? What options might they have to navigate this situation?


Currently, in 8 out of 10 situations, the topic of a Bounce Back Loan does exist.

At the risk of repeating, the Bounce Back Loan Scheme was, in my opinion, the right thing for the government to do at the time. However, it is also the right thing for the government to expect these loans to be ingathered for the public purse.

The COVID-19 pandemic has changed the way in which the whole world works, and this has led to the markets for some businesses not being there anymore.

It is true that the Bounce Back Loans were given with no personal guarantee. However, I have seen some financial institutions approach the directors of companies for repayment plans, even if the loans were used correctly. It is, of course, a personal choice as to what the director wishes to do in those circumstances, and we are not here to judge – the director could agree to take on the liability personally, but I would caution against a long-term payment plan as we have seen some significant interest rate rises which could affect that.

HMRC will not allow a director to strike off a company if there is a Bounce Back Loan. As such, the director can seek advice from insolvency professionals. Based on individual circumstances, experienced insolvency professionals can guide the director through the best-tailored process for them and their business.

This could include negotiating a payment plan if the company has a longer-term future or properly closing the company down, ensuring that the director does not incur any personal liability.

One of the benefits of early interaction with an insolvency professional is the time for them to set out route maps based on the information that they can ingather – the more time, the better information, which can lead to sensitised cashflows and future market conditions being tested against business plans.

It’s true that no one has a crystal ball, but making decisions based on research and information is the best way to progress and can assist in the tailored solution.


How do you approach working with the stakeholders involved in an insolvency process, such as creditors, employees, and directors?


Within an insolvency process, there are often multiple competing interests. However, there is often one common thread – it is a stressful experience.

When called in by the directors, they are the first stakeholders we meet. Normally directors are experiencing extreme stress, and, in many cases, this does lead to physical illness. At the outset, the team are always in information-gathering mode. We have several standard documents that do need to be completed from a statutory perspective, and this forms the basis of how we can provide advice and develop a tailored strategy for the company.

The main part of this stage is listening and understanding the journey that the directors and the company have been on up until that point. This narrative is then compared to formal accounts, and a full picture of the situation is formed. It is usual at this stage that we would uncover the priority issues, for example perishable items that we may need to deal with first from an asset perspective or indeed from a liability perspective those creditors who have gone further down the road of debt recovery.

This then gives us a ‘to-do’ list in order.

Irrespective of our priority to-do list when called in, our team at Middlebrooks speak with any employees.

An employee’s claim is complex and often needs multiple meetings and conversations to ingest the information, collate it, verify, and then send it to the government for processing. In our experience, early and often communication is vital for this group of stakeholders to reassure them. In addition, we work hand in hand with government agencies, such as PACE (Partnership Action for Continuing Employment), to get employees the information they need to make claims or seek new employment as swiftly as possible.

In any insolvency proceedings, once appointed, our role is to act on behalf of all creditors equally.

To this end, there are several documents that are sent to the creditors, and whilst we require to set out the legislation, I have always been in favour of ‘tabloid style’ communication for creditors. In many cases, we face creditor apathy.

This can sometimes lead to making our role difficult – as we act on behalf of creditors, we often need their input, but when faced with mountains of paperwork, I can understand why this may turn people off responding!

In my experience, creditors are most interested in whether they will receive funds back from the process and when. Whilst it is right and proper that they be given lots of information to make decisions, they are also running their own businesses, and even institutional creditors don’t often get involved in the process.

There have been significant changes to the legislation to ease the burden of screeds of correspondence to creditors – such as the use of portals which most IPs offer. However, to get the most out of the process for all, I believe that we could go further in this area.


Can you share the steps a business should take once they realise they may face insolvency?


The main area is to ensure you have limited your potential personal liability and to avoid the pitfalls, the following areas should be considered:


You are under a duty to preserve its assets and minimise its liabilities.


You must ensure that any action you take will not result in any creditors or members being preferred or given an advantage, in particular connected parties.


Further credit must not be taken for any goods or services.


You should not accept the delivery of goods already ordered which have not been paid for.


No assets should be disposed of, except to the extent necessary to meet essential costs and expenses, and you should take care not to allow any of the company’s creditors to obtain possession of assets pending investigation by a subsequently appointed liquidator.


You should not supply any goods or services on credit to existing or potential creditor.


Cash or cheques received by the company should be handed over to us for payment into a separate client’s account.


Any overdrawn bank account must not be used.


Adequate insurance coverage must be maintained. Please advise us immediately if insurance cover expires before the date of the meetings.


Company Credit cards should not be used by staff.


No payments should be made to existing creditors.


Goods should not be dispatched with carriers or hauliers who are owed money.

Restructuring and insolvency professionals are well placed to have sensitive conversations surrounding your business – most offer an initial free meeting; in these circumstances, it is best to seek an early conversation to ensure that you protect your own personal position – don’t wait until five to midnight!


In a digital age where cybersecurity and operational resilience are paramount, the European framework known as DORA (Digital Operational Resilience Act) has emerged as a significant touchstone for financial markets. This act illuminates the pressing need for financial institutions to bolster their digital defences and streamline operations, particularly against the backdrop of increasing cyber threats and ICT disruptions. As we delve into this intricate framework, we sit down with Junaed Kabir, Partner and Managing Director of Parva Consulting, to uncover its profound implications, specifically for Luxembourg, a notable epicentre in the global funds industry. The insights provided shed light on the challenges ahead and highlight the potential opportunities for those ready to adapt and innovate.


To begin, please clarify the essence of DORA and its significance to the funds industry?

DORA (Digital Operational Resilience Act) is a European framework that aims to establish a robust and resilient approach to delivering digital capabilities in Financial Markets.

The requirement to ensure that organisations can continue resilient operations in the face of significant disruptions caused by cyber-attacks and information and communication technology (ICT) concerns is at the heart of DORA. DORA fosters the convergence of standards for ICT and cyber practises by offering a unified and consistent approach.

DORA covers five major issues: ICT risk management, incident reporting on ICT-related topics, administration and oversight of critical third-party providers, digital operational resilience testing, and information and intelligence exchange.

DORA underlines the significance of financial firms proactively identifying and categorising ICT assets in order to restrict inherent risks to acceptable levels. Financial institutions must develop effective risk management policies to protect themselves from cyber-attacks and disruptions by thoroughly knowing their digital infrastructure.


Luxembourg is a prominent hub in the global funds industry. How do you envision DORA specifically impacting this sector in Luxembourg?

The emphasis placed by DORA on strengthening operational resilience and defending against ICT-related risks will compel Luxembourg's financial institutions to reconsider their current processes and controls.

DORA will necessitate the implementation of new and more sophisticated rules, information technology controls, and resilience testing procedures. While some businesses, such as credit unions and investment firms, may already be in compliance in some areas, many will need to create totally new frameworks to meet DORA's criteria.

As the compliance journey evolves, it becomes increasingly crucial to incorporate critical stakeholders in the process. Information Security Officers, IT Officers, Risk Officers, and others must work together and contribute to achieve total compliance.


Can you delve into how the implementation of DORA might affect the daily operations of firms in the funds industry?

As Luxembourg-based financial institutions begin their compliance journey, it is obvious that DORA necessitates a proactive and dynamic approach to operational resilience and risk management.

Given the prominence of Luxembourg in the global funds industry, the country's financial firms will need to embrace DORA's criteria in order to maintain their competitiveness and reputation. As the legislative process draws to a close, the Luxembourg financial sector must prepare to detect, monitor, and defend itself against an increasing variety of ICT-related threats. This includes adapting to the Act's requirements for robust ICT infrastructure, incident reporting systems, and comprehensive testing.


Are there particular challenges that Luxembourg-based funds might face concerning DORA that you don't foresee in other jurisdictions?

The adoption of DORA is expected to have a significant impact on the financial industry, requiring various reforms to comply with the new regulatory framework. DORA seeks to increase the operational resilience of financial institutions by pushing investment firms to make significant changes to their internal procedures, risk management systems, reporting, and transparency methods.

Many Luxembourg-based financial institutions benefit from the IT infrastructure of a parent firm that is not based in Luxembourg. Control, oversight, and incident reporting are frequently assigned to the parent corporation. This will have to change; under DORA, the Luxembourg organisation must be able to demonstrate complete ownership of the IT infrastructure.

Investment businesses will need to conduct a thorough examination of their internal procedures in order to identify flaws and potential sources of failure. To avoid disruptions caused by cyberattacks or technological failures, comprehensive operational risk management practises, such as the establishment of contingency plans and seamless communication between departments, will be essential.

DORA intends to impose higher transparency standards on investment firms, forcing them to provide more detailed and regular disclosures to regulatory agencies and investors. This will need the development of new reporting frameworks capable of capturing a greater range of operational risks and occurrences.

DORA implementation will increase compliance costs and resource allocation for investment firms. Adapting procedures and systems to satisfy the new criteria will necessitate a significant investment in both financial and human capital.

Investment firms will need to invest in advanced technology and cybersecurity measures to boost operational resilience. Cyber threats constitute a significant threat to operational continuity; therefore, enhancing cyber defences is vital.

DORA is a critical step towards enhancing the financial industry's technology and cyber risk management and resilience. DORA's goal is to offer a uniform regulatory framework that improves the industry's operational resilience across all EU member states by focusing on risk management, incident reporting, and oversight of critical third-party providers. Financial organisations must proactively embrace DORA's criteria to ensure their ability to withstand, respond to, and recover from ICT-related disruptions and threats, ultimately safeguarding the stability and security of the financial system.


What opportunities might the introduction of DORA bring for the funds industry, particularly in Luxembourg?

The implementation of DORA in Luxembourg opens several opportunities for the funds business, leading to increased growth, innovation, and competitiveness in the global financial market.

DORA's implementation has the potential to improve collaboration and knowledge exchange across the funds industry, resulting in a more unified and forward-thinking financial ecosystem.


How should fund managers prepare for the implementation of DORA? What steps can they take now to ensure a smooth transition and ensure they are ready for January 2025?

Fund managers need to plan ahead of time for the adoption of DORA to ensure a smooth transition and compliance with the new regulatory framework. Early and planned action will help them mitigate hazards, streamline processes, and improve overall resilience. They can take the following critical steps:


How does Parva Consulting support clients in preparing for and navigating regulatory changes like DORA?

Parva Consulting assists customers in preparing for regulatory developments like DORA, achieving compliance and improving operational resilience through professional consulting services.


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