Wirefund

Businesses Owners Potentially Signing Their Lives Away, As Many Misunderstand Personal Guarantees

Businesses Owners Potentially Signing Their Lives Away, As Many Misunderstand Personal Guarantees

55% of business owners don’t know what a personal guarantee is, according to new research by Wirefund. The survey of 510 senior decision makers revealed that many misinterpret the clause, with 21% believing it only means that money should be paid back on time and to the best of one’s ability. Enterprise owners’ apparent ignorance could have consequences reaching beyond their business, as 61% of respondents don’t realise that personal assets are included as collateral. Just 8% are aware of how inescapable a personal guarantee is and that high-street banks always require them when offering finance. Despite the risk involved, business owners appear unfazed with 79% stating they had not been put off a loan because it included a personal guarantee. Amit Sankey, CEO of Wirefund said: “Personal g... »