Personal Surety for Business Credit Card

[dbz0e]

Hi, just managed to get limit increase in for FNB Business Credit Card (call from FNB in Durban???). But how come I have to stand surety for the debt for "UNLIMITED" amount. Seems a ambiguous of them. Please advise guys. Is this normal practice of the bank to operate like this.

 

[Eti1]

Seems reasonable. Wouldnt be good practice of the bank to bind you as surety for 50% of the debt.

I'm guessing they could just as easily have said "whole/entire debt without limitations" instead of "unlimited".

Much of a muchness imo (without any experience in this regard so don't take my word for it). Ask the bank to clarify.

 

[Gtx Gaming]

I to had sign surety of 200k even know the credit card only has a limit of 15k.

 

[Raithlin]

It's "normal" but that doesn't mean you should accept it as is. Fight it all the way. If they want your business they will give in most cases. Signing personal surety for a business is a no-no in my books.

 

[xrapidx]

It's "normal" but that doesn't mean you should accept it as is. Fight it all the way. If they want your business they will give in most cases. Signing personal surety for a business is a no-no in my books.

...this is 2017.... they don't give a **** if you don't bank with them.

 

[NarrowBandFtw]

It's "normal" but that doesn't mean you should accept it as is. Fight it all the way. If they want your business they will give in most cases. Signing personal surety for a business is a no-no in my books.

^this, the business is an entity independent from you (depending on how it is set up of course), there is no reason to let the bank tie you together just to let them avoid the risk of doing business. If you run a sole proprietorship or the like though you are legally bound together anyway and signing surety in your own name is no different than doing it in the business' name.

 

[bwana]

Hi, just managed to get limit increase in for FNB Business Credit Card (call from FNB in Durban???). But how come I have to stand surety for the debt for "UNLIMITED" amount. Seems a ambiguous of them. Please advise guys. Is this normal practice of the bank to operate like this.

Limit increase means you had an account with them? And they're only asking for surety now? Tell them to stuff the limit increase, you must have a decent enough credit history with them to offer you the increase in the first place.

 

[Se@n]

Good luck trying to get out of signing surety with a bank - they're pretty much god when it comes to this.

 

[Jehosefat]

You want money, they want to manage their risk in giving you the money. What's the problem?

 

[dbz0e]

Thanks guys!

Ok, back to getting the touch with the banker, and according to him, this is the norm. Even if the company has a R100m turnover, the directors of the company must stand surety for the business credit card, no other way. (WT..!)

This is in case the business is liquidated or cannot pay for its own debt.

 

[Greg C]

Hi, just managed to get limit increase in for FNB Business Credit Card (call from FNB in Durban???). But how come I have to stand surety for the debt for "UNLIMITED" amount. Seems a ambiguous of them. Please advise guys. Is this normal practice of the bank to operate like this.

My friend unlimited is actually a default. The bank is essentially lazy as is your business banker.

Standing surety as a backer (Jocky) as we like to call it in credit for your business is standard. But not as unlimited. We limit the value to your overall exposure to the bank

To answer another quesion here was why did I sign a surety for R200k over R15k limit

3 Reasons why here
1) Typo or issue with the contract/ suretyship that was provided OR more likely
You exposure including your personal and business exposure to the bank was R200k OR the more unlikely
The bank finds you high risk, and would prefer to cover itself with a margin.

More than likely just check your overall exposure with the bank even for things you arent using or are linked as alliance partners etc