Negotiating a loan

How can you protect yourself if your lender insists that you personally guarantee a loan?

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  Get your accountant in on the act.
  
  Your accountant can help you through the often-arduous application process and assist in negotiating the terms of the loan.
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  Provide collateral.
  
  The more collateral your business can offer and the more liquid those assets are, the less important personal guarantees may be.
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  Do your own due diligence.
  
  Ask your advisers, colleagues in your community, vendors or customers if they can offer insights on the reputations of the banks you’re planning to approach. Also make sure the bank is financially stable.
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  Refrain from withdrawing assets from your company for at least a year before applying for a loan.
  
  That will lower your debt-to-equity ratio and strengthen your position.