Sample 1 - Blog #securitySample 1 - Blog #securityhttps://lololol.zohosites.com/thoughts/tag/securityTue, 13 Aug 2024 16:39:44 -0700http://zoho.com/sites/<![CDATA[Why do lenders ask for collateral, security, or a personal guarantee?]]>https://lololol.zohosites.com/thoughts/post/Why-do-lenders-ask-for-collateral-security-or-a-personal-guarantee

Here are few misconceptions about personal guarantees

If you're a small business owner or property developer, you've probably been asked by a lender to provide security for a loan. This can be a confusing and daunting request, but it's important to understand that there are several reasons why lenders ask for security. In this blog post, we'll explore some of the most common misconceptions about why lenders ask for security, and help you understand this important requirement.

#1. Misconception: Lenders only ask for security because they don't believe in the borrower's ability to repay the loan.

This is one of the most common misconceptions about why lenders ask for security. In reality, lenders ask for security because they want to protect their investment. If a borrower defaults on a loan, the lender can use the security to recoup their losses.

#2. Misconception: Lenders only ask for security because they want to make the borrower's life difficult.

Another common misconception is that lenders only ask for security to make the borrower's life difficult. This is simply not true. Lenders understand that borrowers may not have the assets to post as collateral, which is why they offer alternatives, such as letters of credit or personal guarantees.

#3. Misconception: Lenders only ask for security because they want to protect their own interests.

This is another common misconception. While it's true that lenders want to protect their investment, they also understand that borrowers need access to capital. Security provides the lender with peace of mind that the loan will be repaid, while also giving the borrower the flexibility to use the loan for their business.

#4. Misconception: I don't need to give a personal guarantee because there is enough security.

This is a common misconception that can lead to serious problems down the road. Just because there is security does not mean that you are not personally responsible for the debt. If the business fails, the creditors will come after you for the money. This is why it is so important to make sure that you are comfortable with the level of risk before taking on any debt.

#5. Misconception: I don't need to provide security because I have good credit.


This is another common misconception. While a good credit score may give you access to better terms, it will not exempt you from providing security. Lenders understand that even the best businesses can fail, which is why they require security.

In conclusion:
Understanding why lenders ask for security is an important part of the loan process. We hope that this blog post has helped clear up some of the misconceptions about this important requirement. 



Running a business can be tough and working capital finance can often seem like a headache. GIC Capital offers a wide range of working capital solutions to meet the needs of small businesses. We can help you with everything from invoice financing to merchant cash advances. Learn more about our working capital solutions here: Click Get Started Below.

]]>Mon, 05 Dec 2022 00:51:57 -0800<![CDATA[UK Businesses Still Unprepared for GDPR – How to be Compliant]]>https://lololol.zohosites.com/thoughts/post/UK-Businesses-Still-Unprepared-for-GDPR-–-How-to-be-Compliant


With GDPR now in full effect, a huge number of UK businesses – large and small – are still leaving themselves open to data theft. For those companies that do fall victim to targeted attacks seeking valuable data, this could have very real financial repercussions under the GDPR framework.

New figures have shown that millions of UK businesses are currently using data storage methods that are not fit for purpose. To find out how your business could fall prey to GDPR, and how to avoid penalties, read on.



The Facts


The survey – conducted by Beaming – revealed that 4 million UK businesses are extremely vulnerable to data theft. The figures show that nearly 1 million UK businesses do not back up their data at all.

A further 2.8 million businesses do back up their data but keep these copies in the same storage space as the original data, simply providing another avenue for a determined hacker to access. It was found that 44 percent of small businesses do this, and so too do 42 percent of medium-sized concerns. Worst of all, 17 percent admitted to not backing up data at all and leaving it on in-office computers and employee devices.



Compliance


With these shocking figures in mind – and the attendant potential fines – here’s what you need to do ensure compliance for your business.

You need to ask yourself why you need the data you hold. Under GDPR, these reasons are known as a ‘lawful basis’. There are six categories why an organisation or business may need to retain, and process data and they are: contract, legal, consent, vital interests, obligation, legitimate interests and public task. You need to know which categories apply to you and why you need to retain this data.


Next, you need to know how to deal with individual rights requests. These are the legitimate and legal rights every person has. You need to be able to explain why you have their data and, if they ask, you need to be prepared to delete it from your records. It’s compliance issues like this that make it important to establish if you need a Data Protection Officer in your business. This person will be responsible for overseeing and monitoring your GDPR compliance.

Importantly, you need to be clear and able to explain how you store data. We’ve seen some of the horror stories above, and you need to be clear and consistent in how data is stored at rest, in use and when transmitted to another party.


Finally, you need to prepare for the worst-case scenario of a data breach. Who will report it? Who needs to be notified? You need to be fully aware of what to do if a breach occurs.

If you can work through this list and give clear, well-planned answers, then you are in a good place with regards to GDPR. 

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