Bank Personal Guarantees and Collateral

Business owners often balk at giving personal guarantees but they are a fact of life in most banking relationships for small to medium-sized businesses. What guarantors often overlook is the benefit to them of the bank having adequate collateral for the loan and ensuring that it has been properly perfected.
 
One of the things that holds small companies back from achieving their full potential is the reluctance of the owner to go into debt. While this is a laudable resistance point, sometimes it can be just as harmful as taking on debt in the first place.