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