Raffi PailagianMBA, BSc, DipFP
Adviser / Managing Partner
All business owners are aware of business insurances that cover for theft or damage of business infrastructure or stock, however, very little is known about protection that can cover the business in case of the temporary or permanent loss of the key person, business debt guarantor, or an equity partner.
Think what would happen to your business if you lost your most successful sales representative. How long with the business be able to manage without the sales revenue that this key person generates? If a new sales rep was hired how long would it take them to achieve the same level of sales and income?
If a guarantor of your business debt suffered an illness and not return to work would your bank pressure you to provide a new guarantor? And what if your bank was not satisfied with the new risk?
If one of your businesses major shareholders or partners passed away would their beneficiaries disrupt the business by asking for the value of their shareholding distributed to them via your business partners estate? Would they want to be involved in the day-to-day running of the business and if so what skills or knowledge do they have in relation to the business?
Just by painting these three pictures of the loss of a key person, business debt guarantor, or equity partner we can see the potentially disastrous effect that either of these events would have on the business.
One of the areas of focus within our Business Advisory Service aims to uncover these potential risks and recommend strategies to fund the business for loss of revenue, repayment of debt, or payout of the deceased equity partners dependents.
Head Office: Suite 105-106, Level 1, 39 East Esplanade, Manly NSW 2095
Manly Financial Services Pty Ltd is a Corporate Authorised Representative (Representative No.: 321127) ABN 38 115 806 883 of Futuro Financial Services Pty Ltd, Australian Financial Services Licensee (AFSL 238478)
This website contains general advice only. You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Futuro Financial Services Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website.