debt protection
what business debts can be protected?
Companies take on debt in many forms, be it a secured commercial mortgage, a revolving facility such as invoice factoring or an unsecured business loan. Whilst a limited company is limited by shares, the funds still need to be repaid if the company ceases. Protecting the life of the person or people who are ultimately responsible for repaying the debt can put their minds at rest.
what are the risks?
Should a borrower fail to repay the debt and the company fold, the lender could potentially come after the personal assets of the borrower. If the borrower were to die and the company subsequently cease trading, it would be a great relief for the family of the deceased to know there are funds which can be used to settle all outstanding balances. Even if the company continues to trade, it is often adversely impacted by the loss and clearing the business debts could be the difference between survival and closure.