The big killer in the UK is the inability to get rid of business leases, largely because landlords can still force exemption from the legal protections. The second is lenders who can insist on 'directors' personal guarantees' at every turn - which puts their family homes on the line.
If there is one thing the UK could do to boost business startups, it would be to ensure that business owners can hand back leases whenever they want, and that 'directors guarantees' are unenforceable.
However in a country that remains obsessed with land and titles, that is unlikely to happen.
At least you have one of the best personal bankruptcy laws in the world?
Some Polish business guides used to tell you to be prepared to move to UK if your business in Poland doesn't work out. You will still lose everything, but at least you won't be chased by debt collectors for the rest of your life. This probably isn't true after Brexit though.
All banks demand a big hole punched through your LLC with a personal guarantee as a condition of granting a loan. They have very little effect on lenders.
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The big killer in the UK is the inability to get rid of business leases, largely because landlords can still force exemption from the legal protections. The second is lenders who can insist on 'directors' personal guarantees' at every turn - which puts their family homes on the line.
If there is one thing the UK could do to boost business startups, it would be to ensure that business owners can hand back leases whenever they want, and that 'directors guarantees' are unenforceable.
However in a country that remains obsessed with land and titles, that is unlikely to happen.
At least you have one of the best personal bankruptcy laws in the world?
Some Polish business guides used to tell you to be prepared to move to UK if your business in Poland doesn't work out. You will still lose everything, but at least you won't be chased by debt collectors for the rest of your life. This probably isn't true after Brexit though.
Would you take the other side of those deals?
They said the same about limited liability corporations about 200 years ago.
Once the regulation is in, property owners and lenders would have no other choice.
All banks demand a big hole punched through your LLC with a personal guarantee as a condition of granting a loan. They have very little effect on lenders.
Aren't there lenders in the UK that don't insist on 'directors personal guarantees'?
They probably just lend at much higher rates.