Gateway Financial Advisers

Funding for businesses is only the tip of the commercial iceberg. At Gateway, we offer independent advice on Shareholder / Partnership Agreements, Management Buy-Ins, Management Buy-Outs, Company Pension Schemes and other options for Retirement.

Every aspect of a business life-cycle can be covered in a tax-efficient way, from starting a business, buying a business, buying into a business, expanding or restructuring a business, passing the business to a successor, selling part of a business or even……winding up a business.

Case Study One

Client A
Restructuring the finances of a going-concern Post Office, experiencing financial difficulty. Following poor advice from a Bank, client’s loan repayments were too high, leading to cashflow problems. Stock levels were run down, causing lack of turnover and inability to service the loan. Client’s account placed into Debt Recovery.

Action
We obtained authority from the client to negotiate a settlement figure with the lender, from which a figure of £70,000 less than the outstanding balance was obtained. In view of the poor credit status incurred by the client, we obtained an interest-only loan from a secondary lender, encouraged the client to maintain regular payments, obtained a statement to this effect which, with up-to-date trading figures, enabled a primary lender to take over the loan.

Result
The Post Office is still running, with increased sales and an improved loan agreement. Consequently, the cash flow is now sufficient to expand the premises and enhance the range of products offered.

Case Study Two

Client B
We have recently arranged a DTI Loan for a local firm of architects, established for over 30 years, to enable two senior directors to be bought out by two other directors. Our clients subsequently wished to improve cashflow by discharging and consolidating their loan liabilities and raise monies to offset taxable profits by using them as pension contributions.

Action
In view of the competitive rate applicable to the original DTI Loan, we left it untouched but were able to restructure other liabilities to a single, cheaper alternative, with a mainstream lender, thus releasing monies for other purposes.

Result
The Company continues to trade profitably and the remaining directors have built-up substantial provisions for retirement whilst reducing the firm’s annual tax burden.