What is loan protection?
One of the biggest challenges to the success of many businesses is finding the money to set up or expand. And if you’re not fortunate enough to find someone willing to invest in your business, you may have to borrow to realise your plans. Quite often your ability to repay any borrowing depends on one or two key people in your business. If these people were off work for a long time, sales might fall, customers may go elsewhere and profits could drop making the repayment of these debts very difficult. The pressure of trying to run your business and deal with mounting debts is likely to take its toll. If you have protection in place to cover the loan, you’re making sure that even if a key person suddenly becomes ill or passes away, the loan will be paid off. Although you may think you have enough savings and investments to rely on, they’re likely to run out more quickly than you’d expect.
Why Cover the Debt?
With the right cover in place, if you or a key person were to pass away or be diagnosed with a critical illness you could:
- Repay loans (removing any personal guarantees)
- Use the previous loan repayments to recruit a temporary or permanent replacement
- Train one of your other employees to step into the key person’s role
Contact the PIB specialist team on 01352 721300 so we can understand your business’ requirements and bespoke a solution that will ensure the future success and value of your company is protected.