Businesses take on £58bn in lockdown debt
do you need a business protection safety net?
With lockdown forcing businesses up and down the country to close their doors for months, the government’s various coronavirus loan schemes have proved a lifeline. However, with more than half of UK businesses already indebted before lockdown even began, and a further £58bn borrowed since March8 , it’s more necessary than ever to consider business protection insurance, including business loan protection.
Security in uncertain times If you have taken on more debt to keep your business afloat during the pandemic, you’re certainly not alone. If, however, you didn’t have an insurance policy in place as security prior to lockdown (like 80% of businesses9 ), it’s all the more important you take one out now.
How does business loan protection work?
Business loan protection provides funds to repay debt such as commercial mortgages, business loans or director’s loans should the company find itself unable to. This could happen if, for example, one of the company’s directors were to die or develop a serious illness.
A business loan protection policy usually takes the form of a life insurance or critical illness policy (or sometimes both), which Businesses take on £58bn in lockdown debt will provide funds to repay the business’s debts if the worst were to happen. If you’re a business owner, you may have used your own personal assets, such as property, as security for a business loan.
If so, not only you, but your loved ones, could face financial hardship if you are not insured.
Don’t take the risk
Many businesses have unfortunately lost their battle for survival this year – but don’t let yours be one of them. Nobody likes to imagine they will die or become ill during their career, but unfortunately it does happen – as recent events have shown us only too well.
So, please get in touch – we can help you find a suitable policy to protect your business against the unexpected.
8 UK Treasury, 2020, 9 Legal & General, 2018