Financing -- Loans/Personal Credit with Multiple Owners - Small Business Loan
QUESTION: Howdy! Me and two others are in the planning stages of opening a small local business. We are close to the financing phase, and we are considering applying for a small bank loan. We are currently an LLC and have not began making product or generating revenue yet. Two of us have great credit, but one of us (me, in fact), is going through a short sale, and my credit is less than stellar as a result. Will my bad credit have a negative effect on our chances to secure a loan if we went that route? Can we apply for a loan with just the other two owners as applicants if we are all listed as owners?
Thank you very much for your time!
ANSWER: If your partners will accept you, and you're credit as a legitimate partner in this deal
Then, have them borrow 100% of the funds and then you sign a note pledging your interest in
In whatever share of the business you may have
---------- FOLLOW-UP ----------
QUESTION: Hi, I think your answer was cut off somehow. Only parts of your sentences seemed to show up. Could you please re-post it? Thanks!
Yes, your partners can apply for a loan and keep you off the application.
If your partners will accept you, and you're credit as a legitimate partner in this deal.
Then, have them borrow 100% of the funds and you sign a note pledging your interest in
in whatever share of the business you may have
If your partners will trust you to sign a promissory note, that seems to be the best solution for you.