As for as business is concerned co-signer gives the surety to pay the loan if borrower is unable to pay it. Banks need co-signers for security purposes; in case of a new business setup that has no previous working history.


In a business environment co-signers have to pay the loan if borrower is unable to pay it. Co-signers are required for by the banks to fulfill their amount by selling their property if a person is unable to pay the loan.

Co-signers also pay the charges that result in case of a late payment. Borrowers should find a co-signer that can afford all possible a business environment co-signer dose not sign any thing but promise to pay the loan at the required time or help you in a strange all property and credit history plays an important role for the borrowers to take the loan.

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Rana Mansoor Akbar Khan

Rana Mansoor Akbar Khan

Financial Blogger. Tech Journalist. Freelance web developer.


  1. August 1, 2010 at 11:27 pm

    Good advice. Thank you.

    • August 4, 2010 at 12:13 pm

      Thankyou Sniper :)

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