Dick is in charge of manufacturing, quality and engineering, while Andy oversees sales, marketing and production control. Both are continually focusing on their goal of Total Customer Satisfaction. It is a combination that definitely works. If you would like to have your business featured in a future Spotlight please let us know Personal Guarantees Personal guarantees are often necessary for business owners. These guarantees may be required by a bank or by vendors to extend credit or credit terms.
Personal guarantees make a business owner personally liable for potential liabilities.
Should the business be unable to fulfill its loan obligations and have insufficient collateral, the lender will look to the business owner for repayment. Entrepreneurs should be fully aware of such obligations and try to minimize them when possible. Usually banks request these guarantees, unless the business has an extraordinary amount of its own collateral. However, personal guarantees are usually not a lender's primary security. By placing the owner at risk, the bank gains an extra advantage.