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Businesses often take out loans to start up a company or to expand their operation, and their ability to repay often rests on a few key people. These loans of course create company debts.
Business loan protection provides a lump sum for businesses to cover their loans should an owner or key person involved in the repayment fall critically ill or pass away.
Most types of business loans can be protected, including:
- Commercial loans and mortgages
- Director’s loans
- Venture capital loans
- Personal guarantees
What is the impact on your business if it faced losing a business owner who shares or holds debt?
Put simply, it can be disastrous for your business’s survival. For example, some common issues to consider are:
- The loss of the individual or individuals who have guaranteed the loan.
- If the debt is an overdraft, loan, or commercial mortgage and is unable to be paid, it will have serious implications for the business.
- Directors’ loan accounts should be paid on death.
The question is, where does the money come from to repay the debt?
How can business loan protection help?
In the event of a claim, the proceeds from the policy give your company a cash injection that can be used to reduce or clear debt within the business, easing the burden, and allowing your business to continue to operate.
Get in touch
If you would like to discuss your business needs and how this type of cover could help provide security for your business, please get in touch by completing the form below.