Money

ADVERTORIAL: Support for anyone in financial distress due to the pandemic


Chartered accountants, Wylie & Bisset, is advising professionals and other intermediaries with business clients concerned about financial distress resulting from Covid-19 restrictions to consider a Business Debt Arrangement Scheme (DAS).

A statutory debt management plan introduced by the Scottish Government, a Business DAS gives clients an opportunity to stretch out a financial dip or debt extension because of Covid-19 and to even out their liabilities over several years.

Assets are not considered, so houses and cars are unaffected by the DAS.

Under the scheme, the client pays back the full amount due to creditors based on balances owed when the DAS is effective. Any subsequent interest and charges which would otherwise be payable are frozen. Repayments are typically monthly from income.

Gordon Chalmers, partner, and insolvency practitioner at Wylie & Bisset said that, if approved, a DAS will allow all debts of the business to be repaid over a period of up to five years. If creditors have started the legal process of recovery, then a Business DAS will stop this action going further.



Gordon Chalmers, partner, and insolvency practitioner at Wylie & Bisset
Gordon Chalmers, partner, and insolvency practitioner at Wylie & Bisset

He commented: “Directors of SMEs can have personal liabilities for directors loan accounts or company debts that they have guaranteed.

“These may have been crystallised and called up because of their company’s failure due to COVID-19. If the client is now able to secure regular income, then they can spread these debts out over several years.

“We have successfully implemented a case where a director was being pursued by the liquidator of his company for a debt of £120K, and a client being pursued a personal guarantee for crowdfunding of his collapsed company.”

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Chalmers notes that there will also be employed professionals who have suffered reduced wages from furlough/salary reductions or a period of unemployment.

He continued: “These individuals may have had a level of debt that was perfectly manageable pre-COVID-19, but due to an income reduction and/or debts incurred to sustain income levels now have repayment problems. DAS allows them to reschedule this.”

Wylie & Bisset is advising professionals with business clients experiencing financial distress resulting from Covid-19 restrictions to consider a Debt Arrangement Scheme (DAS) and to contact a financial advisor for details about the scheme.

Wylie & Bisset LLP is a leading chartered accountants Glasgow-based practice, with a national reach, offering your business or organisation the right solutions when it comes to managing and growing your business. Head to the website to find out more, wyliebisset.com.



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