As you’ll know, it’s vital to the ongoing success of your business to meet the repayments on your business debts, and to have the funds to repay the total outstanding amounts. However, if you, one of your co-owners or a key staff member was disabled, died or suffered a specified major trauma, it could quickly derail your business.
Debt protection can help you repay your business debts if the unexpected happens, allowing you to focus on other important business decisions.
This might suit you if…
- you’re a business owner or partner
- your business has debts and you may not be able to continue with contractual repayments if you or a key person was disabled, died or suffered a specified major trauma
- you have signed a personal guarantee for major borrowings and upon death would like financial assistance with the repayment of debts to prevent impact on your personal assets.
Here’s what you get:
- A lump sum payment at an agreed amount to help meet your business’ debt obligations following the loss of a business owner or key staff member due to disablement, death or a specified major trauma.
Is your business protected against debt?
If you, one of your co-owners or a key staff member suffered a specified major trauma, became disabled, or died, that can severely affect your business. The loss impacts on your revenue – which, in turn, impacts on your business’ ability to meet debt repayments.
If the worst happens, and the loss is permanent, then you may find your business needs to repay a total debt.
Debt protection means that whatever happens, you’ll have some financial support to meet your business’ debt repayment obligations.
Would your business be able to cope?
If your business relies on funding for support with day-to-day cash flow and the capital funding of assets, it’ll typically come from a variety of sources:
- the business owners
- the bank
- your suppliers
If you’re able to meet your debt repayments, your business will continue to run smoothly. However, should the unexpected happen to you, your co-owners or a key staff member and your business fails to meet debt repayments, your key relationships can deteriorate.
It pays to have a plan to ensure that you can always meet your debt repayments.
The importance of a debt protection planShow more
Having a debt protection plan makes good business sense. It’s likely that you and your co-owners have signed personal guarantees for any major borrowings – making you personally liable for any debts.
Debt protection cover can help you repay your business’ debts in case of the unexpected. This means one of your financial worries can be lessened. It also allows you to concentrate on other important business decisions in the wake of the loss of an owner or a key staff member.
Apply for business protection
If you want to maintain your business’ ability to meet your business’ debt repayments, it’s good to talk to an Adviser. They can talk you through the different options and help you decide which suits you and your business best.