We are hearing more and more stories of people who have borrowed money (or rather taken out a finance agreement) from Nationwide Commercial Finance, owned by Alfandari Private Equity.
Alfandari will finance high risk borrowers, such as start-ups and poor credit businesses. As such, it stands to reason that they will be very aggressive to non-payers. They generally protect themselves by getting guarantors to pledge their properties if the original borrower has no assets. Amigo loans operates in a smiliar same way for personal loans.
If you have received money from them and there are any potential problems in the business then you MUST take action. Finding a new funder to replace their loan is an option but again as these loans are generally risky, other lenders willing to take on the loan will be few are far between. However, they do exist so get in touch, especially if your business has been trading more than a year. Alfandari will have to be willing to give up the charge on the property.
It is very important that guarantors get legal advice if they are to pledge their properties. Like the Lloyds Insurance crisis of the 90s they will force sales and bankrupt people if necessary. Many people are under the illusion that if the business goes into liquidation then the debt dies with the company. Yes the company doesn't owe the money anymore but the liability is shifted onto the guarantor!
It should be noted that these are not actual loans but finance agreements. So again anyone thinking of taking out such an agreement should take legal advice in our view.