I own a corporation, and every time I do anything with the bank, or large vendors, they all want personal guarantees.
I would bet that when Bell, Rogers, Ford, etc need funding, or purchase a wack of computers, or a fleet of trucks that the board members do not take personal liability for the debt.
Is this just a size thing - get to a certain amount of monthly sales and the request for personal guarantees goes away?
What about a certain number of employees (I have 8) - do I need to cross some magic threshold?
at what point is my company a real corporation with real credit, not back by the majority shareholder?
Are there practices to put in place, or ways to conduct business to get the ball rolling in my favor?
I would bet that when Bell, Rogers, Ford, etc need funding, or purchase a wack of computers, or a fleet of trucks that the board members do not take personal liability for the debt.
Is this just a size thing - get to a certain amount of monthly sales and the request for personal guarantees goes away?
What about a certain number of employees (I have 8) - do I need to cross some magic threshold?
at what point is my company a real corporation with real credit, not back by the majority shareholder?
Are there practices to put in place, or ways to conduct business to get the ball rolling in my favor?