Getting a loan or line of credit can be a great way to grow your business. But these financing tools often come with requirements that can put an entrepreneur in a tight spot. The most prominent of these requirements is the personal guarantee, which most banks insist on when giving out business loans.
At Lighter Capital, our approach to lending is geared to be as entrepreneur-friendly as possible. We like to reduce borrowers’ risk and maintain their control and ownership of their company — and the rest of their assets. That’s why we never require personal guarantees from our borrowers, whether for revenue-based financing, term loans, or lines of credit.
Our stance on personal guarantees is only one of the many reasons entrepreneurs tend to find our funding options more appealing than traditional business loans. Continue reading What Is a Personal Guarantee on a Business Loan and Why We Don’t Require One