Dispute Resolution Coronavirus Hub
The months ahead are going to be difficult for many businesses,.
We’ve put together this hub to consolidate all our articles that might be of particular interest if you are in negotiations with your bank, with your landlord, or with your suppliers, or in any kind of dispute, be that financial, contractual, or professional.
We are proud of the fact that our clients rate us for our high level of service and client support. We strive always to provide a personal, boutique service to our clients, who rate us for our “inclusive and compassionate” culture, and our balanced legal advice. This holds just as true in these unprecedented times whilst we work from home. Although our working environment may have changed, we are still at work, are just as accessible as we have ever been, and are very happy to help.
HMRC Investigations – The Coronavirus Job Retention Scheme – Furlough Payments
When the lockdown comes to an end, and the grants from The Coronavirus Job Retention Scheme cease, there is no doubt that the retrospective process of HMRC investigating claims made by companies under the scheme will begin.
This could involve HMRC investigating your business and whether it was appropriate for your business to claim the grant.
Scottish Courts: Simple resumption or rejuvenation post-lockdown?
Since the United Kingdom went into lockdown on 23 March 2020, the majority of physical court appearances became unworkable.
In large part, the courts essentially shut down; physical appearances were restricted broadly to essential criminal matters; and electronically, the courts would only deal with ‘urgent’ civil business. ‘Urgent’ – in the Scottish Courts and Tribunals Service (‘SCTS’) sense – has a somewhat nebulous meaning, but in strict terms meant that the court – in terms of civil business – was only dealing with Caveats, interim interdicts/orders, and urgent corporate insolvency or sequestration applications.
New Protections for Commercial Tenants in the Coronavirus Outbreak
In response to the dramatic reduction in cashflow for most small businesses, commercial tenants in Scotland are now benefiting from additional protection from eviction on the grounds of non-payment of rent amidst the COVID-19 pandemic.
The Coronavirus (Scotland) Act 2020 became law on 6 April 2020. As part of government measures to protect small businesses, this Act has brought in an extension on the period of notice for termination of a lease as a result of non-payment of rent.
Managing your Business Relationship with your Bank During the Pandemic: Loan to Value Covenants
In any economic downturn banks will look very closely at their customers’ performances and in particular their customers’ loan covenants. Against this backdrop, banks will be looking closely at their customers’ performance, and in particular at the loan to value or “LTV” covenant.
Emergency Changes to UK Insolvency Rules
Viable companies are experiencing unprecedented financial difficulties as a result of the continuing outbreak of COVID-19. Following a number of government announcements over the past few weeks concerning measures to support businesses affected by the outbreak and resulting lockdown, on 28 March 2020, Business Secretary Alok Sharma announced emergency changes to the UK-wide insolvency regime to alleviate pressures on companies and directors, in a bid to support companies to “weather the storm”.
The Coronavirus Business Interruption Loan Scheme (CBILS)
CBILS is a new scheme that can provide facilities of up to £5m for smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow as a result of Covid-19.
CBILS is intended to support a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.
Online Fraud - When there's blame to go around
With the lockdown in full force, the transfer of money electronically has never been so prevalent and, indeed, so necessary. However, that means that there is more opportunity than ever for the unscrupulous fraudster to intercept this money and prevent it from ever reaching its intended recipient! In this post, we discuss where the buck stops when a fraudster intercepts a transaction where professionals are involved and who should pick up the bill when it all goes wrong.
New FCA Measures for Customers Struggling with Repayments
The UK’s financial watchdog, the Financial Conduct Authority (FCA), has today proposed new measures to provide temporary financial support to customers being hit by the effects of coronavirus.
This announcement comes in response to most lenders introducing overdraft rates of almost 40%, a measure which has resulted in fierce criticism from both borrowers and financial commentators.
Top Tips: Dealing with your Bank
With many businesses facing concern and uncertainty over cashflow in the coming months, reliance on finance from banks is going to be crucial for survival for many SME. MBM Commercial’s Dispute Resolution team have a long history of acting against large institutional lenders in matters relating to bank’s actions amid the 2008 recession, and remain the only firm ranked in Chambers for Banking Litigation in Scotland on the borrower side.
Caveats: Protecting you and your business against the unexpected
With so many customers and workers currently staying home, some businesses will be facing an increased risk of insolvency.
You may be caught unawares should legal proceedings be raised against you or your business. Putting caveats into place can help bring peace of mind.
COVID Cashflow - Time is of the Essence
In these uncertain and unprecedented times, the importance of protecting your business has never been greater. With social distancing slowing down production and trade, we are all having to think more creatively to adapt and ensure the personal safety of our families, colleagues and employees.
The reality is that this adjustment is going to undoubtedly affect the cashflow of most, if not all, businesses. This means that both recovering and paying debts is going to be more difficult, but doing both will be essential for survival.