Key Question: Does The Business Have Any Unprotected Loans Or Debts?
Business Loan Protection can help the business pay any outstanding borrowings such as a loan, overdraft or commercial mortgage, should the person(s) covered be diagnosed with a terminal or critical illness (if chosen) during the policy term.

57%

Of Businesses Have Some Form Of Debt

We can see from the research results that business debt has increased 6% since 2013 and 25% since 2011, yet a large proportion of businesses do not have cover in place to repay debt.
57%

Who’s Running The Biggest Risk?

Those least likely to have any cover in place are shown below. As you can see most of these are smaller or newer businesses showing that personal wealth could be at risk.

42%

all-female businesses with no cover

43%

recent start-ups under two years with no cover

56%

businesses with lower borrowing under £50,000 with no cover

58%

small companies valued under £250,000 with no cover

36%

all-female businesses with owners older than 40 with no cover

42%

sole traders with no cover

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Directors Loan Accounts

Helps pay an outstanding overdraft, loan or commercial mortgage against the loss of the guarantor

TOP FIVE REASONS FOR DIRECTOR’S LOAN ACCOUNTS

1.
47%

Start-up capital

2.
44%

Expansion/ growth of business

3.
32%

Investment/ purchase of shares

4.
13%

Lack of available borrowing

5.
10%

Profits not taken from business

28% Of Businesses Were Not Aware That A Director’s Loan Account Needs To Be Repaid On Death.