1. If the other party fails to repay the loan on time, the company is the lender and the bank will ask the company to repay the loan. Even if the local government repays the debt to the company, the company is also the first payer, and the bank will deduct money from the company account, which may affect the normal operation of the company.

2. If the other party fails to repay in time, it will affect the company's credit record, thus affecting the company's future financing.

3. Loans in the name of the company occupy the available loan amount of the company. If a company needs a loan for its own operation, it may not be successful, because the loan amount is not enough, because the amount that each company can lend according to its own financial situation is limited.

Extended data

If the loan is made in the name of the company, the company must bear the responsibility, and after taking the responsibility, it can seek compensation from the company as a legal person. If it is a limited company, the legal representative acts on behalf of the company, and the repayment responsibility after signing the loan contract shall be borne by the company, and the shareholders shall be liable to the company to the extent of their capital contribution.

If it is a partnership, the behavior of the legal representative represents the partnership, and the debts of the partnership are jointly and severally liable by each partner, which is also the fundamental difference between a limited company and a partnership. As long as shareholders have not transferred their shares, they are still shareholders of the company and still have obligations and rights.

Article 149 of the Company Law of People's Republic of China (PRC) * * * Directors, supervisors and senior managers who violate laws, administrative regulations or the Articles of Association when performing their duties in the company shall be liable for compensation.