What is business debt?
A business debt is normally known as a debt which has been incurred by a company. A debt can be incurred on behalf of a company by its directors or by its employees. A company can only be liable for a business debt if the debt was authorised by the person who had authority to incur the debt on behalf of the company. An individual (normally a company director) can only be liable for a business debt if the individual signed a personal guarantee or incurred the debt knowing the company was insolvent or lastly failed to comply with a Directors’ Penalty Notice issued by the Tax Office.
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