Company Debt affect personal borrowing capacity

Discussion in 'Loans & Mortgage Brokers' started by Jarrodw, 3rd Feb, 2022.

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  1. Jarrodw

    Jarrodw Member

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    If a trading company, eg building company, has a loan for a company vehicle and there was no personal guarantee from the director required for the company to lend the money for the vehicle purchase, would directors personal borrowing capacity to purchase a property be affected?
    Would the company debt be limited to the company only?
    Thanks
     
    Jarrodw, 3rd Feb, 2022
    #1
  2. Morgs

    Morgs Well-Known Member Business Member

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    Depends on the lender - for some they will not take company liabilities into account as long as the company is trading profitably
     
    Morgs, 3rd Feb, 2022
    #2
    Lindsay_W and Terry_w like this.
  3. Jarrodw

    Jarrodw Member

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    Thanks Morgs
     
    Jarrodw, 3rd Feb, 2022
    #3
  4. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Depends on which bank, if you dont need to use company profits then you don't need to add company debts
     
    Tony Xia, 3rd Feb, 2022
    #4