Many small business owners have had to put their own credit on the line, in order to secure credit for their businesses. If the business defaults, the finance company goes after the personal. I know that defeats the whole purpose of the "corporate veil," but it's reality these days. I know GMAC asked me for my personal credit info, the last time I purchased a company vehicle.
Yep. Same thing happened to my friend. What nobody wants to talk about is that it also opens you up to liability if you get sued.