[chgs]

In the U.K a typical person will start a limited company which is limited by the assets it has, not factoring in the personal holdings of the directors.

However why would I give such a company credit unless it’s assets outstrip its liabilities?

[nothercastle]

In the USA you can’t get a limited loan. It’s theoretically possible but they don’t give them. All small business loans have a personal guarantee.

[bruce511]

Which is why its useful that you don't have personal assets.

[chgs]

Then you have no assets to offer in guarantee for the loan and thus can’t get one.

[bruce511]

This is the root of what I'm saying. YOU decide how much, and what assets, you want to risk.

YOU decide whether to risk your house or not. If you do do it, then at least you're doing it intentionally and not by accident.

Of course bank loans are the tip of the iceberg. Lots of creditors want personal sureties, not just on your loans but others too. Most of those sureties contain language like "all present AND FUTURE" debts. You got divorced 30 years ago? They don't care.

[bruce511]

I'm guessing you're not a bank?

Banks (and other financial institutions) make loans all the time that are not necessarily backed with collateral. This is reflected in the interest rate that you pay.