Get free updates - subscribe to our monthly newsletter Subscribe
Many businesses have some form of borrowing in place; often loans to assist with capital projects such as the purchase of premises or plant and machinery, or overdrafts to assist with shorter term working capital. Many directors also make substantial financial commitments to their businesses via director’s loan accounts.
Whilst most proprietors have arranged insurances to cover these important business assets, far fewer of them have established cover to repay outstanding corporate debt in the event of death or illness, and if the need does arise is there sufficient capital available to repay this?
Death or long term illness/incapacity can change the complexion of a business entirely, so if this happens (and it does) business owners need to ask themselves how well they are prepared and what the potential impacts could be.
Below are some key questions we think business owners need to consider:
These are just some of the questions that death or incapacity could raise, so putting the right cover in place is something all business owners should consider.
Obtaining professional advice is also essential. Make sure your adviser has a good understanding of your business and fully considers the potential impact such events could have, to ensure that your business gets the cover it needs to help properly protect it.
For further information about business protection visit www.armstrongwatsonfp.co.uk
If you like this article and would like our FREE updates sent straight to your inbox then subscribe to our monthly newsletterSubscribe
All content © 2015 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.
Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. Unless otherwise indicated, either expressly or by the context, we use the word “partner” to describe a member of Armstrong Watson LLP or an employee of Armstrong Watson LLP in their capacity as such.
Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales, number 8800970. The registered office is 15 Victoria Place, Carlisle, CA1 1EW.
Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales, number 7208672. The registered office is 15 Victoria Place, Carlisle, CA1 1EW. Armstrong Watson Financial Planning & Wealth Management is a trading style of Armstrong Watson Financial Planning Limited.
Armstrong Watson Trustees Limited is a limited company registered in England and Wales, number 84495656. The registered office is 15 Victoria Place, Carlisle, CA1 1EW.