If you have a substantial overdraft facility from your bank, have you arranged this on a redeemable overdraft basis or a non redeemable basis?
Let me explain suppose the overdraft facility is £100,000 and being fully utilised, having a fully redeemable overdraft facility will cost you perhaps 1% more but if you were to die would be paid off.
The non redeemable overdraft is not paid off on death.
So if say the rate on the overdraft was 15%. Would you prefer to pay 16% and fully redeem your overdraft on death or save 1% and pay only 15%?
Let me ask you, what is the difference between the two schemes?
If you think it is 1% you right and wrong!
The real difference is the survival of the business, the continuance of which may be of real value to your family.