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    Redheadboop's Avatar
    Redheadboop Posts: 1, Reputation: 1
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    #1

    Jan 26, 2012, 03:48 PM
    Subchapter S/Personal Guarantee Bus. Loan.. Can I do a Home Equity Line to pay off
    I am a subchapter S corp. I have an equipment loan at 5.5% interest with our bank.. We had to sign a personal guarantee along with the company receivables for this loan. My question is this... Can I get a home equity loan for 2%less and pay off the more expensive bank loan to reduce the payment each month? Am I allowed to do that and if I do that how is it handled on our books? Thanks
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jan 26, 2012, 04:11 PM
    Yes, there is no law against you using your home as collateral to pay off a business loan. However, you will be responsible for payment, so if the company fails, you could lose your home.
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