Rory, Marsha & Chris have a small Motor Vehicle Repair Garage. They have been in business together for the last 6 years. They would like to expand their business as trade has been growing over the last 3 years. In order to expand they need to take a substantial business loan of £250,000 to acquire new premises and up to date repair equipment. The bank has approved their loan – however they are nervous about this arrangement. When they originally set up each partner contributed £25,000 towards start up costs – they all have equal partnership. The loan is to be set up on an interest only basis in joint names for a period of 15 years. Furthermore they have access to a business overdraft facility of £4,000 should they need it.
The bank has advised them they are required to set up suitable protection arrangements for themselves, their families and each other for business protection.
Required: Discuss what protection options are available to them, what recommendations you would make and why.