Business Loan Protection
If a director arranges a commercial loan, there may be a requirement for a director’s personal guarantee secured against assets, e.g. a family home or business premises.
Business Loan Protection insurance provides your business with a financial lifeline that covers loan repayments following a director’s death or diagnosis of a critical or terminal illness.No Obligation Consultation
Do I need Business Loan Insurance?
Following the death or incapacitation of a director who secured a loan with a Director Personal Guarantee, lenders may harbour concerns about the future stability of a business. If lenders are concerned about the business’s future, they may renegotiate loan repayments or trigger an immediate repayment demand.
Renegotiating business loan repayments typically incurs expensive interest. If a business is experiencing declining revenue, it may lack the financial strength to shoulder increased debt.
If the company cannot repay the debt, personal guarantees may be enforced on the business or surviving family requiring the sale of assets such as a family home or business premises.
The financial pressure exerted on the company or spouse can be unbearable, especially during grief following loss of a business partner and or loved one.
Business loan protection helps mitigate this pressure with a cash lump sum payment which helps cover loan repayments and shields your business and family from financial disruption.No Obligation Consultation
Benefit of Business Loan Protection Insurance
Following the loss of a director who secured a commercial loan, business loan protection insurance can pay a cash lump sum following a successful claim.
Cash can help pay off or reduce existing business loans or pay back Directors’ Loan Accounts and business overdrafts.
Premiums are payable by the business, and the policy pay-out is typically tax-free. Business loan protection offers cost-effective access to capital, helping management pay off or reduce debt following the loss of a director.
For more information on our business loan protection policies, please complete the short form below, and a member of our team will contact you to discuss your requirements.No Obligation Consultation
Have You Considered Adding Executive Income Protection?
If you or a partner, shareholder or Key Person suffered a heart attack, stroke or cancer and survived, but required an extended period of sick leave, they and your business could benefit from Critical Illness.
Following diagnosis and successful claim, Critical Illness cover would pay a cash lump sum to the policy holder helping alleviate any undue financial pressure.
Your No Obligation Consultation
Should you wish to learn how Business Loan Protection Insurance can benefit your company, please:
- Complete the short form below
- Email us at firstname.lastname@example.org
- Call on 0333 050 0088
We look forward to hearing from you.No Obligation Consultation