When lending capital to a small business, a bank may require a personal guaranty of its repayment from the owner.

Name: When lending capital to a small business, a bank may require a personal guaranty of its repayment from the owner.
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

When lending capital to a small business, a bank may require a personal guaranty of its repayment from the owner.​

Quizplus · Accepted Answer

Banks often require a personal guaranty from the owner of a small business when lending capital to ensure its repayment. This means that the owner is personally liable for the debt in case the business is unable to repay it.

When Lending Capital to a Small Business, a Bank May