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Does GMbH not afford limited liability for loans?
by hgomersall 3y ago
Does GMbH not afford limited liability for loans?
- zwnow 3y agoIt does, but it's about 10k€ and you need to meet certain requirements. Recovering from a 10k€ loss will take some time in a country with extremely high taxes.
- heisenbit 3y agoBank's tend not go give loans to newly formed GmbH without a real person being on the hook.
- fransje26 3y agoI've also heard first hand of banks requiring from business owners to be personally liable for the loans even for well-established, successful businesses. And when you are trying to extend your facilities, the loans are not in the 10k range.. It was mind-boggling..
- badpun 3y agoIf the banks gave cheap credit to businesses without any collateral or any real liability, they would quickly go out of business because of people taking advantage of them. Credit without collateral is available (e.g. credit cards), but it’s not cheap, and it’s limited in size.
- fransje26 3y agoWe are not talking about consumer loans for financially illiterate pigeons ready to be plucked. As stated, we are talking about established, multi-generational businesses with high-end equipment already in use, that would more than cover the necessary collateral by orders of magnitude.