Business Protection

Why do we need Business Protection Insurance?

  • Our business is progressing well,
  • We have been trading for years,
  • We are looking to expand.

If you are not a sole trader, but a shareholder who is active within the business, which was started 6 years ago with a loan of £10,000 by each shareholder.

The business has an overdraft facility of £10,000, of which 60-75% is used consistently.

Our shareholder does the online banking, chases the customers unpaid invoices (after 30 days) and there is usually £30,000 per month outstanding.

Our shareholder, is diagnosed with a condition which needs 9 months of treatment and which will prevent them from working at the end of which they wish to leave the business.

The Effect?

  1. Who will take over their duties?
  2. Do they know the login details to the bank?
  3. How will the bank react? Recall overdraft?
  4. How will customers react? Not pay on time?
  5. Will the shareholder want their loan back, sell their share?
  6. Can the remaining shareholders potentially raise £10,000 for the loan and £6 – 7,500 for the overdraft? Plus buy their share?
  1. How will the cashflow be affected?

 

If this has got you thinking, then call 0345 314 5737 today for a no obligation discussion around your situation.

Contact us today:

0345 314 5737 or enquiries@lrfsltd.co.uk