Tag Archives: small business

Personal Guaranties & Business Loans

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0422forlease

Business loans – particularly those for new startup businesses – often require the borrower to provide a personal guaranty for the bank to proceed with the loan.  A number of the clients that we speak with aren’t clear that if the business is unable to make the loan payments that they are personally liable to pay the business loan back even if the business closes.  In short, you promise to pay the loan back even if the business no longer exists – from your personal assets.

The following article, written by an attorney, helps explain the personal guaranty…     

Personal Guaranties: What Small Business Owners Need To Know

BY JOSEPH F. KOLB

Why do small business owners need to know about personal guaranties? Because personal assets – homes, cars, checking accounts – are on the line, not just business assets.

As a small business owner, it’s likely you’ve been asked to sign a personal guaranty agreement.  If not yet, you will be. Personal guaranties are staples of small business financing.  Consequently, it’s to your benefit to know a few things about them. Continue reading →

Big Small Business

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Small-Vs-Big-Businesses

You are in a group called “big, small business” if you employ at least five people (other than yourself), do over $500,000 per year in annual sales, and have been in business for at least two years. That’s the smallest of the “big, small businesses”. The “large, small businesses” employ 15 or more people (all the way to 500), with annual sales between $2 million and $25 million. That’s a huge range, but according to the Small Business Administration anything under 500 employees is a small business. Continue reading →

Buy Local

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Consumers like to buy locally made things. The July 21-July 27, 2014 issue of Bloomberg Businessweek contains an interesting article about a potential new local trend. The owners of Absolut vodka, the French group Pernod Ricard, are looking to profit from those buyers who will pay a premium for small-batch locally made vodka. They are franchising. Pernod supplies the distilling equipment and the vodka recipe, but the production, sales and marketing and some profits are the entrepreneur’s. Continue reading →