Asset (debt) Protection
MLC/Asset (debt) Protection provides your business with the ability to satisfy creditors and maintain your credit status through the period that you are unable to work. Asset (debt) Protection also protects your assets pledged as security for lending.
When asked what their most important assets are, most business owners initially think of physical assets. Yes, they are valuable to every business, but it's the intellectual capital provided by the key people, like you and your business associates, that typically makes these assets generate the business' profits.
The problem
Material things can always be replaced or repaired but a key person's death or disablement can result in financial loss more disastrous than any loss of, or damage to, physical assets. When a key person dies, or is permanently disabled, they're lost to the business forever, which can create immediate financial problems for the business.
Asset sale
Without the security provided by the key person, the business may be forced to sell assets to maintain cashflow if creditors press for payment and debtors hold back payment. Customers and suppliers may not feel confident in the trading capacity of the business, and its credit rating could fall if lenders are not prepared to extend credit. Outstanding loans owed by the business to the key person may also be called up for immediate repayment.
The solution
Asset (debt) Protection can provide the business with enough cash to preserve its asset base so it can repay debts, free up cashflow and maintain its credit standing if a business owner or loan guarantor dies or is disabled.
To find out more, talk to your NAB Business Banker or call 13 10 12.
More information
- Call 13 10 12
- Contact your NAB Business Banker
