July 2015 - First 4 Commercial
31Jul2015

Key Man Insurance – Why It’s Important For Your Business

What is key man insurance?

Key man insurance is primarily a life insurance on the key person to the business. If your business is small then this would normally be the owner or the founders of the company if there is more than one owner. This person is considered ‘key’ as without them the business would not be able to function, therefore they are crucial to the running of the company.

How does key man insurance work?

A company would purchase a life insurance policy on the key employee/s, they pay the premium and are the beneficiary of the policy if anything happens to the key person/s. If this person died the company would receive the insurance payoff.

Why is this important?

If the key person died in a small company then this could see the foreclosure of that company as there would be no one at hand to run it. The purpose of this insurance is to help the company survive the blow of losing the person who makes the business work. The insurance money received would allow a replacement person to be found, or if necessary allow the closure of a company in an orderly way, for example paying off any investors, severance pay to employees etc.

How much key man insurance would you need?

Generally you should get as much insurance as your business can afford. Think about how much money your business would need to survive until the key person could be replaced and for the company to get back on its feet. Address what the short term needs of your company are and how much would be needed in case of a tragedy.

31Jul2015

Key Man Insurance – Why It’s Important For Your Business

What is key man insurance?

Key man insurance is primarily a life insurance on the key person to the business. If your business is small then this would normally be the owner or the founders of the company if there is more than one owner. This person is considered ‘key’ as without them the business would not be able to function, therefore they are crucial to the running of the company.

How does key man insurance work?

A company would purchase a life insurance policy on the key employee/s, they pay the premium and are the beneficiary of the policy if anything happens to the key person/s. If this person died the company would receive the insurance payoff.

Why is this important?

If the key person died in a small company then this could see the foreclosure of that company as there would be no one at hand to run it. The purpose of this insurance is to help the company survive the blow of losing the person who makes the business work. The insurance money received would allow a replacement person to be found, or if necessary allow the closure of a company in an orderly way, for example paying off any investors, severance pay to employees etc.

How much key man insurance would you need?

Generally you should get as much insurance as your business can afford. Think about how much money your business would need to survive until the key person could be replaced and for the company to get back on its feet. Address what the short term needs of your company are and how much would be needed in case of a tragedy.

24Jul2015

The Hidden Disadvantage in Your Personal Loan Agreement

You’ve secured a low interest personal loan that’s just what you need – but is there a hidden disadvantage that could mean you’re repaying more than you really need to? If you’re considering a personal loan to tide you over on a short term basis, early repayment fees could leave you out of pocket. Known as ‘early repayment charges’, ‘early redemption fees’, or even ‘finance penalties’, some lenders may penalise you should you attempt to repay more than the agreed monthly fee.

Pay Early, Pay More?

Early repayment fees may seem unfair, but they’re actually completely legal under UK law. The Consumer Credit (Early Settlement) Regulations 2004 state that lenders can legally charge up to 58 days of interest if a debt is paid off in full during the repayment period. Of course, under these regulations, the earlier you pay off a debt, the more you’ll pay in additional fees and charges. For borrowers wishing to pay off debts with savings or earnings, this can have a significant impact.

If you anticipate that you’ll have the means to repay a debt earlier than agreed, it’s essential to look for a personal loan that does not implement early repayment penalties that could punish you for being financially savvy. First4Commerical work with some of the UK’s best peer-to-peer lenders offering small, short term loans of up to £25,000 with no early repayment fees. This allows for greater flexibility with regard to repayments, creating ultimate peace of mind for borrowers.

 

24Jul2015

The Hidden Disadvantage in Your Personal Loan Agreement

You’ve secured a low interest personal loan that’s just what you need – but is there a hidden disadvantage that could mean you’re repaying more than you really need to? If you’re considering a personal loan to tide you over on a short term basis, early repayment fees could leave you out of pocket. Known as ‘early repayment charges’, ‘early redemption fees’, or even ‘finance penalties’, some lenders may penalise you should you attempt to repay more than the agreed monthly fee.

Pay Early, Pay More?

Early repayment fees may seem unfair, but they’re actually completely legal under UK law. The Consumer Credit (Early Settlement) Regulations 2004 state that lenders can legally charge up to 58 days of interest if a debt is paid off in full during the repayment period. Of course, under these regulations, the earlier you pay off a debt, the more you’ll pay in additional fees and charges. For borrowers wishing to pay off debts with savings or earnings, this can have a significant impact.

If you anticipate that you’ll have the means to repay a debt earlier than agreed, it’s essential to look for a personal loan that does not implement early repayment penalties that could punish you for being financially savvy. First4Commerical work with some of the UK’s best peer-to-peer lenders offering small, short term loans of up to £25,000 with no early repayment fees. This allows for greater flexibility with regard to repayments, creating ultimate peace of mind for borrowers.

 

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