Post by stevio on Oct 29, 2015 20:33:15 GMT
My main concern is that the reason we asked for a DG was that the businesses accounts didn't stand up on its own merits - ie. it signals that the lending company underwriters have analysed the accounts and believes there is significant risk that the company will not be able to pay back the loan
A DG was not a confirmation that the director had any assets at all (in fact no confirmation was done to confirm any assets, although a credit check was done to ensure they weren't to over committed with other loans), it merely passed the responsibility for the loan to the Director, similar to the the Director taking out the loan personally
For me a DG is a sign the business can not support the loan itself and I am effectively lending to the Director - so rather than believe in the business, I then have to believe in the Director
The DG was a single page document and no further documents were needed
For a business loan Bank of Scotland just needed the last accounts for both secured and unsecured loans and credit checks