PHOTO: Commissioner Kenneth Hayne has examined the risks facing guarantors.
Banks would have to bluntly warn parents planning to guarantee their children’s business debts that they risk losing their home, and that many small businesses end up failing, under proposals to the royal commission.
After the commission last month delved into parental guarantees of business loans, Bank of Queensland (BoQ), Legal Aid NSW and the Finance Sector Union (FSU) backed changes to ensure guarantors were making informed decisions when putting their home on the line.
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