Mr Hall had owned a motorcycle dealership for over 30 years and was holding high levels of stock heading into an economic downturn. Over the years, on the advice of his accountant, he had made significant contributions to pensions for tax reasons and had built up a meaningful pension fund.
The business was suffering from cashflow problems due to the high levels of stock, his bank had put the business into a programme of special measures, including monthly accounts production and additional fees, and were making suggestions of calling on his personal guarantee. This all had an adverse effect on Mr Hall’s health.
A PLF arrangement was established and the bank debt was refinanced from the bank to Mr Hall’s pension scheme and the personal guarantee was removed. This allowed the business to trade through the difficult period and alleviate the cost and stress imposed by the bank’s additional measures.
