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A structured plan can help ensure your business survival if misfortune strikes. Business protection plan includes cover for repaying business loans and replacing a key employee.
Contact a business manager
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| A professionally structured business protection plan can help ensure your business survival. Four key risk areas include |
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repaying business loans |
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repaying loan accounts |
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buying out the interest of a partner or co-shareholder |
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replacing a key employee |
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Business loans are often secured by the personal guarantees of the principals and their families |
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If you were to die or suffer a serious illness, the cashflow required to service any business loan may be affected. |
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If creditors are not prepared to roll the loan over i.e. call it in, then your personal assets and those of your family may have to be sold. |
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| A business protection plan can provide the cash required to help repay business loans to protect your assets and estate. |
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If a director or shareholder dies, the estate usually has the right to demand immediate repayment |
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If the loan has been used to provide working capital, your business may not have a cash reserve to pay out the loan. |
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| A business protection plan can provide the cash you need to help repay loans from shareholders or directors and avoid any cashflow problems that might arise. |
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| In situations where there are two or more partners or co-shareholders in a business, significant problems may rise if one dies or suffers a major illness. |
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| Would you, or any other surviving partner or co-shareholders be prepared to |
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have the deceased or seriously ill partner's family come into the business? |
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nominate someone to look after their interests? |
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sell assets to pay out the interest of the deceased or seriously ill partner or co-shareholder? |
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| If not, we strongly recommend that you |
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obtain legal advice on drawing up a formal arrangement that creates the right and obligation, under defined circumstances, for one partner or co-shareholder to purchase the interest of another, and to establish how that interest will be valued |
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consult one of our Westpac business managers who can tailor a business protection plan that can provide the money to enable the surviving partners or co-shareholders to purchase the deceased or seriously ill partner's interest. |
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| This type of arrangement can help your business continue to trade with minimum financial disruption. |
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| If one or more key employees were to die or suffer a serious medical condition, the effects on your business could be devastating |
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productivity could fall |
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job orders or contracts could be lost |
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future plans could be jeopardised. |
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| A business protection plan can provide the cash needed to replace any loss of revenue, find and recruit a suitable replacement. |
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| To find out more about a structured business protection plan to suit your business |
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contact a local Westpac business manager |
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