I think we can all agree that spending your life beholden to the bank is not a great way to live. Yet that’s what happens to so many people who put everything into their businesses. The “I don’t want to answer to a bank manager” plan means you can avoid just that!
This plan looks at the risk associated with business debt. We assess the risk of having personal guarantees and put plans in place for how debt can be managed, if the worst happens and you can’t cover what you owe. With personal guarantees you are ‘jointly and severally liable’ for the bank debt, which means if you lose a business shareholder you will become responsible for all common debt they held with you. Their personal guarantee becomes your personal guarantee, increasing your risk and liability.
The “I don’t want to answer to a bank manager” plan provides you with cash flow to cover your debts at a time when you most need it, taking away your worry and leaving you with time to fix whatever needs to happen to get your business back on track.
No one wants to lose their business or their personal assets, which is why having cover for business debt is really just good sense!