Business Debt Protection

Most business owners are required to provide personal guarantees to secure business loans. Many business owners are unaware that on their death the personal guarantees will remain in force and transfer to their estate.

Business Debt Insurance provides the business with funds to repay or reduce business debts in the event of a business owner’s death or disablement.

This will achieve two things:

  • enable the outgoing owner or their family to apply for a discharge of the personal guarantees; and
  • free up cash flow for the continuing owners and provide customers and suppliers with confidence that the business will trade through the loss of an owner.