Like most businesses you may have borrowed money or extended overdrafts to provide the working capital you need to run your business. The pandemic saw a marked increase in borrowing as businesses took advantage of government backed loan schemes. However, do you know how you would pay any outstanding loans should a business owner or key member suffer a terminal or critical illness?

Under the terms of the business loan the owner or shareholders may be liable for the repayment of the loan. It’s important that you understand the liabilities you face and the risk that places on your business.

We can help you eliminate that risk

We can help you put plans in place to avoid the risk of losing your business, or other personal assets you have secured to it (like your home). Business loan protection is similar to plans that you would take out to cover your mortgage. In most cases you can protect the full amount of the loans you hold with life or critical illness cover. Also, in some cases, the HMRC can treat investment into these types of plan as an expense for taxation purposes.

Don’t lose all your hard work

You and your partners have worked hard to build your business, and while insurance can’t stop the unexpected from happening, it can make dealing with the consequences a lot easier. We can put plans in place to eliminate the risk of you or your partners losing control of your business (or other assets) if you can no longer afford to service your business loans. There are many extremely practical and cost-effective options that we can discuss. If you already have plans in place, we can assess them, and make sure that you are not missing out on better quality cover that is now available.

So, if you have any questions or concerns about protecting our business from the unexpected, please don’t hesitate to get in touch.