Comments on: Would you sign a personal guarantee if you have investors? https://berkonomics.com/?p=3749&utm_source=rss&utm_medium=rss&utm_campaign=would-you-sign-a-personal-guarantee-if-you-have-investors Dave Berkus' business insights Wed, 10 Apr 2019 10:39:36 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: William Schoettle https://berkonomics.com/?p=3749&cpage=1#comment-128448 Wed, 10 Apr 2019 10:39:36 +0000 https://berkonomics.com/?p=3749#comment-128448 I am burdened by three personal guaranties. I think entrepreneurs who sign personal guaranties should accumulate some sort of tax benefit. Perhaps related to passing the business on to heirs? (like they allow in Germany in Sweden, tax free). Us small business owners put our selves on the line. The economy benefit enormously from our effort and risk. Seems fair something should be baked into the system to reward us.

]]> By: Arthur Lipper https://berkonomics.com/?p=3749&cpage=1#comment-126856 Tue, 05 Mar 2019 17:13:38 +0000 https://berkonomics.com/?p=3749#comment-126856 I do not believe entrepreneurs should personally guarantee that which they do not fully control and therefore only sole proprietors should obligate themselves for the debts of their company. It makes no sense to guarantee something one does not control.

Also, it makes much more sense to finance many companies by selling a percentage of revenues than borrowing money or selling ownership interests. If the projected profit margins are not sufficient to pay a royalty then the business opportunity should be reconsidered.

Most new enterprises do not produce the anticipated profits and life is too short to be future burdened and damaged by unpaid personal obligations.

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