Personal Guarantees and Business Loans

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.

- - Volume: 9 - WEEK: 47 Date: 11/16/2021 11:49:18 AM -