BUSINESS LOAN PROTECTION

Whether you’ve taken out a loan for the purpose of getting your business off the ground or whether you’re leveraging one to oversee growth or expansion, your ability to repay this debt is likely intrinsically linked to the fate of key personnel. This might be you or another founding member of the team. It is the vision, leadership and guidance of these key personnel that gives your business the identity that resonates with your target market and the strategy it needs to ensure that performance goals are consistently met or exceeded.
While your business may be able to function without you or them, transitions of leadership are often tumultuous for businesses of all shapes and sizes and your profits may be adversely affected. This in turn can put increasing pressure on your business’ cash flow which in turn can make paying off unpaid business debts increasingly untenable.
If your business reaches a position where it is no longer able to pay its debts following your death or the death of another key team member, it may have no choice but to become insolvent. Thus, this can make all the difference between leaving a lasting business legacy for your family and employees or the brand you have worked so hard to build fading into obscurity.

Of course, we all assume that this eventuality will never happen to us or that our businesses are robust enough in their operations to manage without us. However, data from Legal & General indicates that 39% of company directors expect their company to fail within 18 months of the death or serious illness of a key team member.