What is Business Loan Protection?

Added by Love Business East Midlands | 8 December 2012

UPDATED: 8 February 2013

Loan Protection will give the business enough money to repay its debts in the event that a key person or owner/shareholder dies or suffers from a serious illness.

Business debt is fairly common – mainly in the form of a bank loan, director’s loan account or commercial mortgage.

Many loans will have been given on the basis that the debt is covered by a personal guarantee or a charge. Personal guarantees and charges against assets provide the lender with the security to know that they can claim on the person providing the guarantee if the business cannot meet the repayments.

Personal guarantees and charges, although necessary, in many cases can leave the owners of the business is a vulnerable position should they need to be called upon. We can provide cover to ensure that if someone who is key to repaying the loan dies or is seriously ill these guarantees are not needed and the debts are repaid.