26 Mar Village Wellth: Do You ALWAYS Need a Personal Guarantee to Buy a Business?
One of the most common questions from first-time business buyers is: “Do I have to put my personal net worth on the line?”. In this episode of The 7-Minute Takeover, we’re myth-busting the necessity of personal guarantees and exploring why lenders require them.
In this episode, you’ll learn:
Why personal guarantees are required in virtually all business acquisitions.
The “Three C’s” of Credit: How lenders use guarantees to evaluate your cash flow, collateral, and character.
“correlation risk” and why banks need a second way out if the business fails
How to leverage commoditized assets or high liquid net worth to negotiate or reduce your guarantee over time.
What actually happens to your personal assets, like your home, in the event of bankruptcy.
