Partner Article

Administrators appointed to CFO Lending Limited

Paul Boyle and David Clements of Harrisons Business Recovery and Insolvency Limited have been appointed joint administrators of East London-based CFO Lending Limited.

CFO Lending shut to new business in 2014, putting pressure on cash-flow which more recently became unsustainable.

The business entered into an agreement with the Financial Conduct Authority in September 2016, involving lump sum compensation to many of the company’s customers, for prior unfair practices, all of whom have been notified, as a form of redress for historic failings under former management. However, since then, the business has faced its own cash flow pressures since that agreement.

Trading deteriorated sharply since the start of 2017 leaving the firm with no viable option for the on-going trading of the business other than to seek the protection of administration while seeking a longer term solution in the interests of all stakeholders.

As part of on-going trading of CFO Lending and in compliance with FCA guidelines the Joint Administrators are now liaising with existing customers to ensure they comply with their ongoing duties regarding repayment of their loans.

Paul Boyle, Joint Administrator, and director at Harrisons Business Recovery and Insolvency, said: “We shall exercise our duties as Administrators which includes ensuring that client customers of CFO Lending continue to maintain their repayments on any outstanding loans.

“As part of the Company’s ongoing compliance with the FCA, we remind clients who may be in financial difficulty of the Money Advice Service, which is set up by the UK Government to provide free and impartial money advice.

We shall continue to maximise realisations of the company’s assets in the interests of all creditors and we are currently exploring options for the business and assets with a small number of interested third parties. We urge any other interested parties to make early contact.“

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