Does anyone know about non-recourse business loans?
Thanks, Jag
What do you need to know specifically? The basics are that a non-recourse loan is secured solely by the assets underlying it. A non-recourse loan typically incurs a higher interest rate as the property is not undersigned by the client and acts as the only source of collateral for the loan. As opposed to a recourse loan which is secured by the assets in addition to being guaranteed by the borrower. A recourse loan implies that a borrower’s full credit backs the loan.
I hear that you can obtain a loan that is non-recourse even for a new business. Also I just learned after creating an LLC and C-Corp, those credit card applications that are sent to your new business are not just a liability to your company, even though your EIN is being used for approval - they go after your personal assets if your business tanks.
I hear, from one of those gurus that you don’t have to sign the credit card application and still get the credit card, and no be personally liable. He said there are many unsecured line of credits and business loans that you can obtain, and of course, he will show me how for $2995. I’m thinking the answer is probably very simple, and wanted to see if anyone out there knew. Would prefer to avoid the $2995 program, as it comes with a load of other things that I don’t need and can’t tailor out for a better price.
Jag
Ya I would stay clear of that. People such as myself on other professionals on here can stear you to direct sources. The unsecured business lines of credit usually require a 680 fico I can tell you that.
My middle FICO is 736, but why would that come into play if I have an EIN number, and it’s an unsecured business loan. They said never give your social out for a business loan, or line so that you don’t go down if your company happens to go down.
To all the investors thinking of buying a “how to secure business lines of credit” course…don’t do it! A broker can lead you to the same sources and save you the hundreds, or in this case, thousands of dollars in upfront fees.
That’s what I was wondering! I thought if I just ask my private banker I would get teh full scoop on how to get business credit, so I did. It’s instant, and the longer you are in business the more you can get. And all you have to do is get some accounts, like Office Depo, a Visa card, and something else and you are now on your way to achieving every a larger line. So I thought there might be just a little something that I would not get directly by going to the bank and asking.
This guru keeps telling me that you are not personally guaranting the line, but he bank says you do - that’s the confusing part, and of course he wants to charge $2995 for that info and a bunch of other stuff. :o
In my experience you do personally guarentee the line. You sign the paperwork, your credit qualifies you, but it does not report to your personal credit report.
If you provide the bank your ss# they can and will run your personal credit. This inquiry will report to your personal credit report.
Yes, the inquiry will count, of course since they are qualifying your personal credit, but the payment history, balance, etc will not report to your personal credit report.