If you are not careful, you can get into the situation of being personally liable for your company’s debts.
It is a perfectly reasonable business objective to keep your business interests separate from your personal interests. The whole concept of a limited liability company has this as its premise. However, many creditors will use their commercial power to bring your personal assets into the equation. In particular, the bank will seek personal guarantees from directors wherever they can as will many lessors and some powerful trade creditors.
The principle is even more important if you are a director of a company in financial distress. Creditors will try and obtain your personal guarantee whenever possible - but we believe you should do so in only exceptional circumstances.
Before you make any new commitments in your personal capacity we strongly recommend you CALL US NOW for CONFIDENTIAL FREE ADVICE. It may be the right thing to do, or not!
Another consideration is that when a company is in financial distress, your duty of care can easily extend to new creditors by operation of law. For example see our page on Trading Whilst Insolvent. The area of personal liability becomes a bit of a mine field in distressed situations and you should CALL US NOW FOR FREE ADVICE.
