Before you sign on the dotted line, understand exactly what a personal guarantee on a business loan means to your financial future.
- Most small business loans require a personal guarantee from anyone who owns 20% or more of the business.
- Personal guarantees are usually provided as additional security for the lender on top of other collateral.
- If the business later defaults on the loan, anyone who signed a personal guarantee can be held responsible for the remaining balance.
- This article is for small business owners considering personally guaranteeing a business loan.
RSK: A good primer on this subject. Answer is yes and noi. It does come with liabilities problems.
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- - Volume: 9 - WEEK: 47 Date: 11/16/2021 11:49:18 AM -