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Trust Accounts – Case study 1: The Start Up Travel Business

Often, my first conversation about a trust account isn’t really about the trust accounts itself. It’s about the commercial objectives of the start up company, the resources they have to tackle those objectives, and the legal framework in which they are operating. So many travel companies come to me who are trading using expensive and superfluous means of financially protecting consumers’ forward payments simply because they have not understood what they really need.

An initial consultation helps Serenity’s clients to assess their requirements for financial protection from an objective viewpoint because when we apply our ‘gold standard’, we will only recommend one of our trust accounts if it is the right product for the client’s objectives.

One of our start up clients said about his early experiences of a trust account constructed by us:-

‘I was able to speak to a travel specialist lawyer that could not only answer all of my questions in a way that I could understand them, and in a way that could help me to make decisions; but who also could provide me with a cost effective product that would satisfy the legal requirements that I needed to meet. My trust account was set up simply and quickly and because as a start up company, I wasn’t initially making very many sales, it worked cost effectively because the fees only stared to accrue when my money needed to be withdrawn from the account. This meant that I was able to keep costs low at a time when I needed all spare cash.

The most helpful thing for me was that I wasn’t asked to give any personal guarantees or put up any other form of security to get this mode of financial protection in place. And I didn’t need to pay large sums up in working capital or to get a bond or insurance. For a start up company that is a god send.’

February 2014