Cash Flow is King…

25 Nov 2019

… and it’s an important factor in the financial security of your business, says Steven Clemence FPFS of jewellery insurance specialist TH March.

You have got all your security sorted out and you have insured your stock and your premises, making sure there are no hidden surprises waiting just around the corner to trip you up. Now may be the time to concentrate on growing your business or adding further protection for what you have already built up. It’s easier said than done to run and build a business, but it is also all too easy to run into trouble, especially if, for whatever reason, the cash flow dries up at a crucial time.

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A crisis in your business can often be averted if you have insured the most important assets – not your stock and premises, but you and your key people, against death, critical illness or long-term illness. Make sure, through insurance, that there is money available when it is needed most to get your business through the cash crunch caused by a crisis.

Just as an individual should have a will, you need to think about what would be happening in the business today if something had happened to you or your business’ partners/fellow directors/key people/shareholders yesterday. It should be written down in a partnership or shareholder agreement. You might have to look at your partnership agreement or your memorandum and articles and be prepared to update them, just as you would update your own will if circumstances have changed or what you read isn’t what you expect to happen.

Taking out Key Person Cover and Business Loan Protection shouldn’t just be left to when your investors require it; you should require it to protect your business and your family. If you are growing your business it will be down to your hard work and determination to succeed that will make it happen. In the short term it will be a sacrifice in time to your loved ones, so why not protect their future and the value of what you are building up – ‘the family silver’ – while you are still getting there.

Having a Financial Planner on board to sort out your Business Protection needs will help you put the right plans in place. If they go to the whole of the market they can select the best cover and provider for your needs. You’ll probably want someone with experience in this area and you will also want to run any recommendation by your accountant, but the right advice will allow you to make sure the right cover is paid to the right people (or your company) at the right time.

For information sheets on Key Person, Shareholder Protection, Long Term Income Protection, Business Loan Protection and Relevant Life Cover please contact Steve on 01822 855555 or at 

Steve’s career as a financial adviser stretches back to 1987 and he has been with TH March for 10 years. A chartered financial planner, Steve is also a Fellow of the Personal Finance Society, (the FPFS after his name). The award of a Fellowship reflects the level of advanced study undertaken by Steve together with his academic achievement, knowledge, ethics and experience.

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