How are high-dollar business loans structured?


I’m talking about the multitude of recent newsworthy high-dollar business loans that are often in excess of tens of millions of dollars. Are the businesses the money is loaned to on the hook for repayment? What’s the term length/interest on these types of loans? What happens to the loan if the business goes bankrupt? Are the individuals in charge of the business on the hook in these cases?

In: Economics

Anonymous 0 Comments

Of course the company is on the hook for repayment of the loan plus interest.thats why the lender loaned them the money

If company goes bankrupt, the assets of the company are liquidated aka sold off and the creditors get full or partially paid and lose money. That’s the risk of being a lender.

The officers and founders of the company are not on the hook for company’s debts and liabilities. That’s what’s meant by corporation as its own entity.