Business Loan Protection for Company Debt and Borrowing
What Is Business Loan Protection?
Business loan protection helps ensure company debts, commercial loans, director loans and other borrowing can be repaid if a key person dies or becomes critically ill. Without this in place, outstanding debts may fall on remaining directors or personal guarantors, putting additional strain on the business at the worst possible time.
Cover can be arranged on a life-only or life and critical illness basis, depending on your needs and eligibility.
What Types of Debt Can Be Protected?
Business loan protection can help protect a range of borrowing, including commercial loans, director loans, business mortgages, overdrafts and other forms of business debt. We'll help you identify which debts carry the most risk if a key person were no longer able to contribute to the business.
Why Lenders May Require Protection
Some lenders require life or critical illness cover as a condition of lending, particularly where a business depends heavily on one or two key individuals. Even where it isn't a requirement, leaving business debt unprotected can put significant strain on remaining directors, guarantors and the business itself.
Why Advice Matters
Setting up business loan protection correctly involves considering ownership of the policy, trust structure and tax treatment, which can vary depending on the type of debt and how the business is structured. We'll guide you through these considerations and recommend a suitable structure for your business.
Business Loan Protection FAQs
Ready to Protect Your Business Loans?
New to business protection, or reviewing arrangements you already have? We'll talk you through the options and recommend what genuinely suits your company.
Review My Business Loan Protection
Tell us about your business and we'll be in touch to discuss your options.