Hi everyone. Has anyone ever purchased an existing corporation? If so, can it be used to overcome seasoning issues to obtain unsecured business credit lines???
I appreciate your help and hope to talk about much more interesting stuff in the near future.
I have purchased an existing corp and borrowed money in it’s name, but I’ve never gotten a loan for anything without a personal guarantee. I guess some people are able to do it but from a banker’s standpoint, would you loan money to someone who wasn’t confident enough in the deal to personally guarantee it? From my standpoint, I won’t borrow money unless I am very confident in the profitability of a deal anyway. In my experience getting a loan depends on 4 things: collateral, credit, cash and your relationship with the bank.
Thanks for your response. Most banks look at you as just a file. Relationships is the key as with anything in life. I am looking for cash to invest—need leverage. Thanks again.
J