Alexandoy
VIP Contributor
Would you agree to make your home a collateral for a business loan? When a friend started his business of recruiting worker for Cyprus, the earnings was pretty good because of the high commission that my friend gets. In order to expand his business he rented a big house to be the office of his recruitment agency.
A bank loan was secured for the expenses in the business expansion. The collateral was their family home. Unfortunately after a year of good operation a snag hit the business and the collateral was in danger of being repossessed by the bank. Fortunate a brother rescued the financial problem that the house was saved. That is another lesson in finance that it is a big risk for your home to be the collateral for a loan.
A bank loan was secured for the expenses in the business expansion. The collateral was their family home. Unfortunately after a year of good operation a snag hit the business and the collateral was in danger of being repossessed by the bank. Fortunate a brother rescued the financial problem that the house was saved. That is another lesson in finance that it is a big risk for your home to be the collateral for a loan.