If your business fail do you have to pay for the loan? -

I do not own a business as of yet, I m looking at the consequences of starting my own business, I do not want it to fail, but let s say if I take out a loan, and by some odd chance my business fail, do I have to pay for the loan? It s been a long time but, my teacher said most of the time, you do not have to pay back the loan you ve taken out.. So, I don t know.. Any advice would be appreciated. Thank You.

I do not know what planet your teacher is from , you use some else s money for profit and don t repay it plus interest that is a theft.

no one is going to give you money to start a business, or get a lease for that matter, without you personally backing the loan/lease. Whether you have a corporation or not will not matter. You will be personally liable. Unless you plan on declaring bankruptcy, you will be liable to pay back the loans. Teachers say these things because they have not been in the real world. In theory, 75% are above average.

Always set your business separate from yur personal life. This is not hard to do. If you say I will operate under my personal name and as a sole owner etc. you ve just failed. Learn about incorporating and discover the cash that is available to your business.

Working as a teacher is an authorised post