Business Loan Protection
What is the challenge for business?
Lenders may have the right to demand that the business pays back any outstanding loans. These could be difficult to pay off at short notice.
Some business loans may also have personal guarantees. How would your business survive if faced with the challenge of re-paying a loan if something happened to the individual/s that the repayment relied on?
How can Partners& support you with business loan insurance
Challenge
If the business fails due to the death or illness of an owner or key employee and the business doesn’t have the funds to repay the loan, the guarantee could be used by the bank and put personal assets, including the owner’s home, at risk.
Support
Whenever you consider taking out a loan – whether that be for your business, your home or a personal loan, it’s really important to understand the liabilities and potential risks.
Perform
Business loan protection insurance is designed to support your business by providing funds to pay off any outstanding loans you might have should the guarantor die or be diagnosed with a terminal illness (if life expectancy is less than 12 months).
Challenge
If the business fails due to the death or illness of an owner or key employee and the business doesn’t have the funds to repay the loan, the guarantee could be used by the bank and put personal assets, including the owner’s home, at risk.
Support
Whenever you consider taking out a loan – whether that be for your business, your home or a personal loan, it’s really important to understand the liabilities and potential risks.
Perform
Business loan protection insurance is designed to support your business by providing funds to pay off any outstanding loans you might have should the guarantor die or be diagnosed with a terminal illness (if life expectancy is less than 12 months).
How can business loan protection help you?
Business loans can be arranged with the owners being jointly liable, severally liable or jointly and severally liable for the repayments. It’s therefore vital that business loan protection is arranged correctly and provides cover for the right people to protect the liabilities.
It’s also possible to include critical illness cover so that the policy would pay out if the guarantor were to be diagnosed with a specified condition during the term of the cover. Most types of business loan can be protected, including bank loans, director loan accounts, venture capital loans and personal guarantees.
Questions to consider with business loan protection
