If you run your own business and have personal life insurance in place to financially protect your family, or are considering this, did you know that you could make a substantial tax saving on your premiums by taking out ‘relevant life insurance’?
When you run a business, probably one of the last things you want to think about is if one of your key people becomes ill or dies. And quite right too, you should be focusing on the future success of the business and where you next new customer is going to come from.
But trust us, it’s worth considering. Depending on the size of your business, it’s possible that there are only 2 or 3 people who are responsible for getting the business to where it is today. So if anything happened to one of these key individuals the impact would be significant.
Borrowing money from a bank to finance your business is a lot harder than getting a loan to buy a new car or to improve your home. Banks have a number of tough rules that you need to know before you approach them for a business loan, and these rules have become even more stringent in recent years.
So by understanding how banks make credit decisions, this can improve your chances of securing a business loan.
A banks main concern is protecting their capital and consequently bankers are generally very conservative. Their priorities are to recover the principal of the loan and earn a reasonable rate of interest on it.