Business support loans and company debt: protecting your company

If you’re the owner of a small or medium-sized business, you may have borrowed money to help with the unprecedented challenges of 2020 – either through the Bounce Back Loan Scheme (which has been enhanced this month) or another source.

Many companies’ abilities to repay these debts rest on a few key employees. Losing these people as a result of serious illness could lead a company to cease trading.

To prepare your business for the unexpected, good financial planning is crucial.

Insurance is available in the form of Business Loan Protection or Key Person Protection. It can provide funds to repay a loan, commercial mortgage, or a director’s loan if one of the business owners or a specified person dies or suffers a critical illness.

In exploring the value to your business of having such insurance in place, you should consider these questions:

  • Does your business have any unprotected loans or debts? This could be from the Bounce Back Loan Scheme, bank loans, overdrafts, credit cards or director’s loan accounts (which would be repayable on the death of the director, if demanded by their estate).
  • How would your business repay these debts following the death of a key person or someone who has guaranteed the loan?
  • Would using an insurance policy be a better solution? Your business will remain 100% liable to repay the full amount of any loan. Without insurance, you may be taking far too big a risk.

Our wealth management experts would be pleased to discuss the best ways of protecting your business with you. For more information, please get in touch using our enquiry form.


BKL Wealth Management Limited is an appointed representative of Vintage Wealth Management Limited which is authorised and regulated by the Financial Conduct Authority number 593380. Incorporated in England and Wales. Company number 08375209.



Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.


Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.


By submitting this form, the data provided will be used to perform your request according to our privacy policy.