3 ms·

If a company collapses while having more liabilities than assets then that's fine. No one is being forced to extend any credit to them.

by nradov 4mo ago

zymhan 4mo ago
It will make it harder for "worthy" companies to get loans and credit.
- woah 4mo ago
  Is that why it's so hard to get capital, credit, loans, and investment in the USA?
- nradov 4mo ago
  Nah. Lenders are free to do whatever credit checks they like. Government doesn't need to get involved.
t0mas88 4mo ago
That's the American viewpoint, right of the strongest, sue if they wronged you. European systems typically have a different philosophy where the counterparties are more protected. It's expressed in stronger consumer protection laws, but also these German things where you can't start a GmbH/LLC with zero capital and wish the counterparties good luck suing you if you never pay them.
- nradov 4mo ago
  You're missing the point. Strong or weak has nothing to do with it. If you want to be protected then don't do business with undercapitalized counterparties. Everyone can make their own decision on acceptable level of financial risk. It's stupid for governments to dictate this.
  - margalabargala 4mo ago
    How do you know if your counterpart is undercapitalized, though?
    - nradov 4mo ago
      You're welcome to ask them for whatever evidence you like before agreeing to do business.
    - tpm 4mo ago
      Look up the business registry, debt registry etc., it should be all there, at least it is in our country.
  - FLHerne 4mo ago
    So the OP can create a UG with €1 capitalization. They can be cheerfully undercapitalized and counterparties, seeing that it's an undercapitalized UG rather than a GmbH, can make their own decision on financial risk. > And the cheap door has a price of its own: to some clients, “UG” reads as “not serious,” and they would rather deal with a GmbH. ...turns out the OP doesn't like that.

3 ms·

If a company collapses while having more liabilities than assets then that's fine. No one is being forced to extend any credit to them.

by nradov 4mo ago

If a company collapses while having more liabilities than assets then that's fine. No one is being forced to extend any credit to them.

zymhan 4mo ago
It will make it harder for "worthy" companies to get loans and credit.
- woah 4mo ago
  Is that why it's so hard to get capital, credit, loans, and investment in the USA?
- nradov 4mo ago
  Nah. Lenders are free to do whatever credit checks they like. Government doesn't need to get involved.
t0mas88 4mo ago
That's the American viewpoint, right of the strongest, sue if they wronged you. European systems typically have a different philosophy where the counterparties are more protected. It's expressed in stronger consumer protection laws, but also these German things where you can't start a GmbH/LLC with zero capital and wish the counterparties good luck suing you if you never pay them.
- nradov 4mo ago
  You're missing the point. Strong or weak has nothing to do with it. If you want to be protected then don't do business with undercapitalized counterparties. Everyone can make their own decision on acceptable level of financial risk. It's stupid for governments to dictate this.
  - margalabargala 4mo ago
    How do you know if your counterpart is undercapitalized, though?
    - nradov 4mo ago
      You're welcome to ask them for whatever evidence you like before agreeing to do business.
    - tpm 4mo ago
      Look up the business registry, debt registry etc., it should be all there, at least it is in our country.
  - FLHerne 4mo ago
    So the OP can create a UG with €1 capitalization. They can be cheerfully undercapitalized and counterparties, seeing that it's an undercapitalized UG rather than a GmbH, can make their own decision on financial risk. > And the cheap door has a price of its own: to some clients, “UG” reads as “not serious,” and they would rather deal with a GmbH. ...turns out the OP doesn't like that.