Posted 2 years ago on Oct. 10, 2011, 7:52 p.m. EST by quantum
This content is user submitted and not an official statement
Samm business owner of new businesses provide both the greates risk and potential gain for a bank. to loan money too. People becoem incorporated such that if their business fails the banks cannot come after them personnally for loss assets. In this cas if such a small business fails, the assets of the business purchased with loan money nust become property of the bank lending the money. However, a bank is not in the business of selling off tangable assets. Thus if a small business shows danger signs of going out of business, a laywer must be assigned and paid for jointly by the lending bank and the corporation to begin to sell off overhead and recover the assets for the bank. This should reduce the risk of lending out money to small businesses especially when they need to restock inventory for the holiday season and recover any losses.