Helping Your Business Survive Your Creditors

The Implications of Securing a Loan

Leveraging is commonly practised in business to establish capital for various projects. Such loans, usually taken in large amounts, are often granted on a secured basis.

Without collateral, lenders would require the key executive to act as a guarantor.

What if something disastrous happens to that key executive? The business' ability to service the loan may suffer and the lender could call back the loan. The liability for the loan may fall on the guarantor's family or estate.