Debt protection

If you can no longer work due to death, illness, or disability and you have guaranteed a loan, having debt protection in place will help your business to service or repay those loans, and settle any personal guarantees.

If you have a guarantee in place and could no longer work, here are some questions to ask:

• Who do you owe and what will their attitude be to your situation?
• What security did you provide against this loan? Your family home, your business, everything?
• What contingent liabilities do you have? What is the remaining term?
• What taxation liabilities do you have?
• Are there current accounts which need to be repaid?

The cashflow test for any business is whether it can pay its debts when they fall due for payment. The balance sheet test is whether the company assets are exceeded by its liabilities (including contingent or prospective liabilities).

If one of these tests are failed then that company is insolvent, and potentially in breach of Director duties.

We want to get to know your business and all of its risks so that together we can plan for the best outcome should those risks eventuate.