Why can't we call it a loan, but in the fine prints say that there is no guarant...

rokhayakebe on Nov 21, 2008 | parent | context | favorite | on: A VC: Getting a piece of my action

Why can't we call it a loan, but in the fine prints say that there is no guarantee to repay if the company goes bust. EDIT: And the loan is made to the Inc so if the companies fails, the owner credit will not be affected.