Commercial bank managers have long complained that it is much easier for clients to get unsecured loans personally, where no evidence is required as to how the loan will be repaid, than it to get unsecured loans for a business, no matter how good the business plan.
As set out in previous articles, if you do have to provide a personal guarantee, make sure it is not secured against your home. This way if the business goes belly up, and the guarantee is called in, you have a strong position and will in all probability keep your home, if you go about things carefully.
If the loan is secured against your property and the business fails, its hard to increase the mortgage, as your income has gone, and you stand every change of losing your home.
Of course many businesses are mostly conducted as sole traders where there is no legal separation between business assets and personal assets and by the largest sector is Buy to Lets (BTL).