No, but be very very careful - is your bank asking you to guarantee a loan personally? If so you should think very carefully - the point of setting up a company is that you have limited liability - if you have insufficient assets in your company, or a bank is generally cautious, it has been known that they ask directors to guarantee the funds they want in place - by means of putting a charge over his house, for example. So putting it bluntly, if the business fails, you could lose your house. This would happen if you were a sole trader - and are not protected by the limited liability afforded by companies.
Are you being asked to provide a guarantee in the name of the company to a third party? Again, there are differing circumstances in which these are valid - view with caution, and avoid where possible - sorry, harder to be more precise with out more information.
2006-11-13 02:46:51
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answer #1
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answered by Miss Behavin 5
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