What contingencies do I need to think about?

What contingencies do I need to think about?

David Weller (Co -author Teach Yourself: Setting Up A Small Business) gives expert video advice on: Will i be expected to pay the money back in one lump sum?; How much interest will I be expected to pay?; What can I do if I can't make a repayment? and more...

Your lender will want to know what's going to happen if, for any reason, your business fails. Perhaps you might have a fire, or one of your major customers goes bust and owing you money. In this situation your lender could well insist on the loan being repaid in full. This in fact is where you guarantor comes in. That's someone or something who backed up your loan to ensure that the lender get their money back in full. It might be a good idea for you to have some savings put aside as a sort of rainy day fund which you could call on if this sort of situation occurs. It's worth thinking about.