Personal guarantees can lead small and medium businesses into bankruptcy, warns national insolvency and turnaround firm Jirsch Sutherland.
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The firm said owners of small and medium businesses needed to understand the risks associated with a personal guarantee before signing up for one.
Jirsch Sutherland said a personal guarantee, also known as a directors guarantee, provides lenders and credit providers a written promise by the director to accept liability for a businesss debt.
It meant an owners home, car and money in their personal account could be used to se…
Read the full article at: https://www.accountantsdaily.com.au/business/18703-beware-of-personal-guarantees-warns-insolvency-firm?_escaped_fragment_=/ccomment-comment=21244
