GO ON? WORST CASE SCENARIO: COULD YOUR BUSINESS. Get the facts. thomasheald. Business Protection For SMEs:

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1 WORST CASE SCENARIO: COULD YOUR BUSINESS GO ON? Business Protection For SMEs: Get the facts. Who needs it What the risks are How it works Why it s important

2 Dear Reader, Recent research published by Legal and General has revealed that 40% of UK businesses would be forced to cease trading within a year in the event of the death or incapacity of an essential person in the company. Of the estimated 4.9m businesses in the UK, 99% are SMEs All because the they didn t see the need for business protection. In fact, 97% of businesses who don t have cover are under the impression that the loss of a director or key member of staff would have no impact on their business. This couldn t be further from the reality. Don t see the need? We can help. Read on to get the lowdown on the key protection needs an SME like yours might need to consider... Kind Regards, Chloe Timperley Client Communications Thomas Heald Chartered Financial Planners

3 SMEs employ 81.6% of the workforce in the UK. They are the lifeblood of the UK economy. With a breakneck rate of change and the looming threat of: Brexit Yet more changes to taxation and government policy Disruptive new technologies Ever shifting consumer demands SME business owners are under constant pressure to expand, evolve and innovate - just to keep pace with the rest of the market. It s no wonder that 58% of small business owners haven t had chance to consider: What would happen to the business if we lost our star performer? One of our directors? A team member with a unique skillset?

4 The unexpected loss of a key person within your company can jeopardise everything you ve worked hard to create. Key Considerations: Profit Loss How much would the loss of a crucial team member affect your bottom line? Replacement Costs How long would it take and how costly would it be to retrain a replacement? Stakeholder Fears What would be the impact of customers and suppliers losing confidence in your business as a result of your loss? Relationship Loss What about the business relationships maintained by this person? What would be the cost of losing their valuable business contacts?

5 THERE ARE FOUR MAIN TYPES OF BUSINESS PROTECTION: Business Loan Protection Did you know that a Director s Loan Account needs to be repaid in full on the borrower s death? Would you be able to repay your business-related borrowings if you or one of your co-directors were diagnosed with a terminal illness? Business Loan Protection can provide the funds to settle outstanding business debts if you die or fall terminally or critically ill (depending on the policy), taking the burden off the business and the people who depend on it. Key Person Protection Do you have any particular individuals who contribute substantially to your profits? Do you know who they are? If an essential team member dies or becomes terminally or critically ill (depending on the policy), Key Person Protection can give you the financial support you need to keep trading while you find and train a replacement. It can also give you the breathing space to step back and make sound decisions about the future of the business. Share Protection What impact would the death of a shareholder have on your business? Unless their will states otherwise, the deceased s share will pass to their next of kin - compromising your control over the business. Share Protection guards against this scenario. If a shareholder dies, you receive a lump sum, allowing you to buy the remainder of the business from the estate of the deceased. This means that there s absolute clarity on who will run the business if an owner dies unexpectedly. Relevant Life Plan Do you currently have life cover? Or want to provide death in service benefits for your employees? While not strictly a business policy, a Relevant Life Plan is a tax-efficient way of arranging life insurance through your company. Because it counts as an allowable business expense, it qualifies for Corporation Tax relief - and there s no additional NI or Income Tax to pay. This can lead to substantial savings on your standard life assurance premiums.

6 WANT TO KNOW MORE? LET S HAVE A CONVERSATION. Thomas Heald Limited is authorised and regulated by the Financial Conduct Authority (No ). Registered in England No: Registered Address: 6 Feast Field, Horsforth, Leeds, West Yorkshire, LS18 4TJ Thomas Heald Ltd. 11 Napier Court, Gander Lane, Barlborough Links, Chesterfield S43 4PZ Thomas Heald Ltd. is a full-service financial planning company. This means that we offer advice on investments, pensions and retirement planning, alongside mortgage and protection advice, both to individuals and corporate clients. In respect of investment advice, please be aware that the value of your investments can fall as well as rise, and you may not get back the amount originally invested. In respect of mortgages, please be aware that your home may be repossessed if you do not keep up the repayments on your mortgage. For more information please refer to our website. You have questions. We have answers. We start you off with a free, no-strings 30 minute phonecall, where we find out what you do, where you want to be, and how you plan to get there. If we think you could benefit from business protection, we ll tell you how. If we think you don t need our services right now, we ll say so. Who are we? Thomas Heald Ltd is a Chartered Financial Planning company. That means we re independent, impartial and brimming with expertise. With several decades worth of combined experience in financial services, we specialise in helping businesses like yours to make the most of what they make. No jargon, no nonsense, no fluff. Just good, sound business sense. GET IN TOUCH. Call: Or enquiries@.co.uk And let us know your name, the name of your company, your number, and the best time for us to call you back.