Bridgewood Financial Services Group

Working on behalf of consumers, sole traders and small businesses; Bridgewood Financial Services Group (Bridgewood) helps individuals and companies overcome debt and make the most of their financial situation whilst offering great service and value for money.

Offering good quality debt advice without obligation, the company hold a strong belief in transparency and fairness. As an ethical organisation, Bridgewood also feel it necessary to make the client aware of the support available from other not-for-profit organisations and charities, such as the National Debt Helpline and the Citizen Advice Bureau that may be able to help with their situation.

Professional members of R3 (The Association of Business Recovery Professionals) and a member firm of The Institute of Chartered Accountants in England & Wales), Bridgewood Financial Solutions work to the philosophy of:

No hard selling
Bridgewood don’t carry out any advertising or marketing, but rely on consumers/small businesses being referred by one of their creditors or an intermediary who knows and trusts the company.  Bridgewood do not have a target/bonus driven sales culture.

Advice that is right
The advice Bridgewood give is based on a 4-5 month customer journey, not a 45 minute conversation. Qualified advisors will explain the pros & cons of each solution supporting the client to make an informed choice about what is best for them.

Good Value for Money
Bridgewood’s debt management fees are the lowest in the commercial sector, which means the client gets value for money whilst creditors receive a higher return.

Great Customer Service

Bridgewood has offices in Nottingham – covering East & West Midlands, as well as in Morley, Leeds – covering Yorkshire & the North.  The business is staffed by people from a financial services and blue chip background, where the service ethos is strong.

Bridgewood offer a variety of comprehensive solutions to individuals and businesses through debt management services, refinancing, debt repayment plans and negotiations with limited company creditors.

Bridgewood was set up by current Managing Director, Robin Tarling.  Following a 9 year career in the Army Robin has spent the last 15 years working in and around the financial services sector, the last 5 of which have been focused on Financial Difficulties; helping creditors better understand and manage their debt management, IVA and bankruptcy cases.  

Drawing on his experiences, Robin explained: “I am therefore in the fortunate, and probably unique, position of having operated on ‘both sides of the fence’.  My observations have led me to conclude that, in general, the commercial debt solutions sector has served consumers & small businesses poorly.”

The company are effectively breaking the mould in the business recovery sector. With a team of highly qualified, knowledgeable financial experts, Bridgewood provide first class advice enabling clients to move forward in reducing their debt with a trusted partner and confidence in a prosperous future. Other than general running costs, no fees are spent by the company on expensive advertising, therefore passing on savings to an expanded client base.

Creditors and the media have a fairly polarised view of this sector – the “free sector” companies are good, whilst commercial companies are bad.  Not surprising, given the commercial sector has, on the whole, earned its poor reputation and the recent OFT review of debt management companies provided further clear evidence of the inadequacies across the sector.

The commercial sector is unusual in that companies rarely try and compete on Price and Quality, but rather they lead on “Free advice” and the benefits of their solutions.  Customers in a vulnerable or desperate state are likely to be drawn in to a particular solution without having the opportunity to fully understand the implications or the alternatives.

However, the demand amongst consumers and small businesses for debt advice and help is huge, and far exceeds that which could be met by the free sector alone, particularly where specialist support for small businesses is required.  There is therefore a strong rationale for good quality, ethical commercial debt solutions companies who operate in a way than engenders trust and confidence amongst consumers, small businesses, creditors and the media.

Bridgewood launched in February 2010 with a clear vision: “To become the most trusted commercial provider of debt advice & solutions, working in partnership with creditors & intermediaries, and offering the highest levels of quality & service, at an affordable price.”

Case Study: The Pub Sector

One of Bridgewood’s early partnerships has been with the pub sector, specifically to support publicans who are tenants of one of the larger pub companies.  This sector is having a tougher time than most, with the “triple whammy” of smoking ban, cheap supermarket drinks and economic downturn having a significant impact on turnover.  The “beer tie” and stubbornly high rents mean that tenants aren’t always in a position to manage down their direct costs and overheads in order to remain profitable.  Recent reports suggested that between 30-40 pubs were closing each week.

“We took on a couple of pubs, who found us via the Internet, did a great job in helping them deal with their debts and keep trading, and it’s gone from there.  We quickly got to know some of the larger pub companies, they became confident in our ‘modus operandi’ and are now often being proactive in making a tenant aware of our services and suggesting that they make contact with us,” explained Bridgewood’s founder, Robin Tarling. 

“Of course the pub company isn’t always part of the problem, often it’s VAT, PAYE, business rates, trade suppliers or utilities, as well as loans and credit cards.  We have become very adept at dealing with HMRC, local authorities and utility companies, many of whom work in a totally different way from retail banks.” Robin continued.

In 95% of cases we will visit the tenant on the premises, so Bridgewood get a better feel for the situation – it also helps develop a trusted relationship.  Based on the financial information that clients have available we will produce a 12 month cash flow forecast, which will tell the team what surplus income the business has each month to deal with its debts – this figure, together with the total amount of debt and the status of play with creditors, will enable us to identify the possible debt solutions.  It is then a matter of describing the solutions, explaining their pros & cons and helping the tenant make an informed choice about what they want to do.

“This has been a good example of how Bridgewood, working in partnership with the tenant, the pub company and the tenant’s accountant, can ensure that the best possible solutions are delivered, and as cheaply as possible. However it only came about because the Bridgewood proposition and approach was so clearly different from the rest of the commercial sector – without that I doubt we would have ever been able establish a working relationship with pub company senior managers in the way that we have.”

“Through the pub sector we have developed a blue print which we are now keen to take into other franchise sectors, where I’m sure there is a similar need.” Robin concluded.

For further information, please call Bridgewood on 0115 871 2901 or visit www.bridgewood.co.uk

R3 - Association of Business Recovery Professionals

“Insolvency Practitioners, the doctor or the priest?” 
March 2011
The perception of Insolvency Practitioners (IPs) could do with an overhaul; they tend to be associated with administering last rites to collapsing businesses rather than acting as a surgery for preventative financial advice. In fact the IP’s experience on the ‘frontline’ of struggling businesses makes them ideally placed to advise on how to avoid insolvency. 
Although many businesses don’t consult an insolvency practitioner until it is too late, IPs spend a quarter of their time on rescue work, turnaround and preventing insolvencies rather than processing them.  So as to avoid impacting negatively on the value of a business, insolvency practitioners are not able to publicise their work with struggling businesses unless they enter into a formal insolvency procedure. However the one message that our members are keen to communicate is the importance of seeking early advice from a qualified source. The period of early recovery is a tricky time and although many businesses are benefitting from supportive creditors and low interest rates, these factors will change in due course and many will struggle to expand when opportunities arise.  
In the spirit of acting as the doctor rather than the priest, Steven Law, the President of R3, the insolvency trade body has compiled this list of health checks that could stave off potential insolvency:
1. Don’t max-out the business overdraft each month. 
Coming out of the recession make sure you have sufficient capital reserves to take advantage of opportunities. Have either cash reserves or access to borrowings through your bankers. 
2. Produce a business plan with forecasts.
A business plan gives strategic focus to the business.  Ensure that actual performance is monitored against forecast.
3. Pay accounts on time, not on receipt of writ, and benefit from discounts. 
Late payment of bills sends out a clear sign to suppliers who will eventually grow weary of your ways and may refuse to supply. Pay on time to take advantage of early payment discounts and create goodwill with your supplier. You may still need to call the favour in. If you are not able to pay, seek an extension from your supplier.
4. Impose strict credit control and debt collection procedures of your own. Guard against the domino effect. 
Only deal with customers who will pay their debts. Insolvency Practitioners estimate that 27% of corporate insolvencies are triggered by another company’s insolvency. Make sure there you have a broad customer and supplier base, as relying on a few customers could be crippling if they default on payments or fail. If your debtors are not paying on time, chase them up. By allowing them to owe you money you are financing their business. 
5. Stay up-to-date with all crown payments. 
If you have cash flow problems ask for a ‘time to pay’ arrangement from HM Revenue & Customs. So far they have been sensitive to the needs of business in this recession. However this must be viewed as only a short term fix - money deducted from salaries and VAT does not belong to the business.
6. Don’t hold a large amount of stock in relation to turnover/profit.
In the upturn the challenge is to have the stock to supply the needs of your customers promptly; this is when you will need to carry some stock. But see if you can arrange ‘just in time’ supplies with your key component suppliers as it will minimise stock carrying costs.
7. Is your accounting system fit for purpose?
Have a system which produces the information you want on a timely basis. Also, be on good terms with your bank manager, keep them informed of developments whether good or bad and provide management figures regularly. 
8. Review for underutilized assets and unnecessary costs
Assets should be made to sweat and work for the business. Surplus assets should be sold to generate cash. Costs savings will also enhance cash flow. 
9. Don’t put personal assets at risk
Avoid committing personal assets to the business without taking independent advice first.
10. Don’t put off seeking professional help.
The sooner a business in difficulty seeks professional advice the greater their long-term chances of survival.  Seek professional advice from a regulated professional or reputable trade organisation as soon as possible. Seeing an Insolvency Practitioner can give you the best chance of turning your business around and avoiding insolvency - they usually offer their first hour of advice free.

Steven Law, President of R3, the insolvency trade body