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.
