What happens if your company goes belly up and you have given the bank a personal guarantee for the loan? It’s simple. The chances are good the bank will come after your assets in order to mitigate their losses to whatever extent possible. They won’t stop at some point because you’ve been a nice guy; they’ll take every last penny they can get. Obviously, no one signs a loan with a personal guarantee with the belief his business will become insolvent or cash flow poor to the point that it can no longer make the loan payment but, by making this choice offer surety, you violate at least two of God’s teachings.
