1. Joint liability: * * Usually, you are jointly and severally liable with the borrower, that is, if the other party fails to repay the loan, you, as a legal person, will also be liable for all or part of the debt. This may bring financial pressure to the enterprise, especially if the partner can't repay the debt.
2. Credit record is affected: As co-borrower, if the main borrower or other co-borrower fails to repay the loan on time, it will directly affect your credit record. This may lead to a decline in the credit rating of enterprises, making it more difficult to obtain other loans or credit lines in the future.
3. Increased liabilities: As a borrower, your enterprise needs to bear additional liabilities. This may have a negative impact on the financial situation of the enterprise, especially when the solvency is challenged or the enterprise itself has other large debts.
4. Risk of cooperative relationship: * * * The cooperative relationship with the borrower may face risks. If the debt problem causes disputes or contradictions, it may lead to tension or even breakdown of the cooperative relationship. Therefore, when choosing a borrower, it is necessary to evaluate the credit status and business ability of the other party to ensure that it has good cooperation potential.
In order to reduce the risk, it is suggested to conduct sufficient risk assessment and due diligence before becoming a borrower. At the same time, make sure to establish a clear division of responsibilities and repayment plan with other borrowers, and regularly track and monitor the loan situation.