Personal guarantees can sink business owners
Understand the risks of ‘personal Kryptonite’, urges insolvency specialist
Personal guarantees can lead to bankruptcy, and SME owners should understand the risks and the ‘rewards’ of personal liability on business debts, urges Jirsch Sutherland, national insolvency and turnaround solutions specialist.
A personal guarantee (also known as a director’s guarantee) gives lenders and credit providers a written promise by a director (or directors) to accept liability for a business’s debt. Which means if the business defaults, the director’s home, car and money in their personal account could be used to settle the outstanding debt. And if you co-own your home with a…
Read the full article at: https://www.miragenews.com/insolvency-specialist-urges-business-owners-to-1030936/