It's very common with "Close companies" (companies that are owned and run by a small number of people) that banks require the directors/owners to act as a perso

It's very common with "Close companies" (companies that are owned and run by a small number of people) that banks require the directors/owners to act as a personal guarantor on company loans. Without that, it would be quite legal for the directors to take a whopping loan, pay themselves a whopping salary/bonus, then have the company go bankrupt without recourse to the bank. Rinse, repeat, profit.