As a small business owner, it’s important to understand the concept of personal guarantees. A personal guarantee is a promise by an individual to personally pay back a loan or debt if the business is unable to do so. This means that
if your business defaults on a loan, you could be held personally liable for the debt. While personal guarantees can be risky, they are often required by lenders in order to secure financing for your business. It’s important to carefully consider the risks and benefits before signing a personal guarantee. Protect yourself and your business by consulting with a trusted financial advisor such as a Licensed Insolvency Trustee or lawyer. #smallbusiness #personalfinance #entrepreneurship #smallbizadvice
is affected by bankruptcy can be complex and depend on the details of your situation. It is important to consult with a Licensed Insolvency Trustee or legal professional to fully understand your options and obligations.
Does A Lender Have To Seek Recovery From Business Assets Prior To Calling On My Personal Guarantee?
It depends on the specifics of the loan agreement. Some agreements may require the lender to seek recovery from business assets first, while others may allow them to immediately call on a personal guarantee. It’s important to carefully review and understand the terms of any loan agreement before signing. Consult with a Licensed Insolvency Trustee or legal professional to fully understand your options and obligations.
Additionally, if you’re considering a corporate restructuring to manage your business debts, Kunjar Sharma & Associates Inc. offers Corporate Proposal services that might align with your needs.