Hotels Can Recover From Mis-Sold Financial Products And Services

Stewart Hindley & Partners LLP provide financial recovery and advice for businesses affected by mis-sold "swap rate" interest products
By: Stewart Hindley & Partners LLP
 
Nov. 4, 2015 - PRLog -- The term "too big to fail" is one that has been used with seemingly greater frequency over the course of the 21st Century thus far. Although the term specifically refers to institutions which should not be allowed to fail or collapse due to their importance to economic stability, popular usage has seen the term used to describe businesses which are so big that one could not see them being at risk of financial trouble. This, more than once, has not been the case, with many large businesses failing financially. When financial problems do strike big businesses, for example hotels, it is often the case that it happens for reasons beyond the control of the business owners. Stewart Hindley & Partners LLP have, over the years, been at the forefront of ensuring that hotels can get the re-financing they need when this happens.

One of the ways in which hotels have suffered financial damage through no mismanagement or fault of their own has been through being mis-sold financial services and products. One of the most damaging examples of this from the last ten years has been interest rate hedging products, in particular those that are described as being either "swap rate" deals or "structured collared" deals. This form of loan service relied on the incorrect assumption that rates would remain flat, which saw many hotels being sold the service without the risks being clearly explained by the financial institutions. In 2012 the Financial Conduct Authority (FCA) declared that interest rate "swap" products were sold misleadingly, which has enabled businesses that suffered from mis-sold products to lodge complaints and claims against the lenders.

That hotels may claim against those who mis-sold them financial services is welcome news. It does not, however, ensure that they can remain as a going concern whilst the legal process is followed. Hotels need to ensure that their cash flow means they can keep operating as a viable business, which can be quite a challenge when managing factors such as seasonal business pattern shifts as well as the loss incurred from mis-sold financial products. Stewart Hindley & Partners LLP have a proven reputation for building business recovery plans for hotels that ensure constructive, supportive and understanding refinancing is gained.

Stewart Hindley & Partners LLP work exclusively with financiers and institutions which understand how businesses in the leisure and accommodation industry work. In understanding the unique factors which affect the cash flow of hotels they have a large degree of flexibility in how they structure loans and debt service expectations, working towards a mutually beneficial agreement.

The UK hotel industry is one of the most lucrative and successful in the world. With the conditions perfect for success to be achieved, it is important that hotel business owners have supportive, understanding and beneficial financial services in place - something all the more true if they are still recovering from mis-sold services. Stewart Hindley & Partners LLP are the trusted team to ensure the correct refinancing and business plan are put in place.

Contact
Stewart Hindley & Partners LLP
info@stewarthindley.co.uk
0845 272 4000
End
Source:Stewart Hindley & Partners LLP
Email:***@stewarthindley.co.uk Email Verified
Tags:Hotel Financing, Hotel Refinancing, Business Recovery
Industry:Financial
Location:England
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