Originally Posted by
TURIN
Not if their assets are squirreled away in off shore accounts or in their spouses name. The company goes in to liquidation, all the creditors lose out, including the lenders and Mr Capitalist keeps his head down for a few months before starting up a very similar company with a slightly different name.
I know I know, this is an extreme example but it does happen. I have the utmost respect for any entrepreneurs who come up with an idea, successfully build their business and employ people on good wages and T & Cs.
Wetherspoons and First Direct are not included.
You can't "squirrel away" your house if your bank has a charge over it as collateral. And this is the case for most start-up businesses. This was even the case for a New Zealand company I was involved with which was the world-leader in its field! It's owner still had to give personal guarantees to the bank.