personal gaurantee
Well Tony,
I guess that we’ll either have to agree that we disagree or my companies have had special treatment in the biz credit game.
Raj
well then let others know what u were able to accomplish. 
what finance co’s and banks’ LOC’s and CC’s was ur co. able to obtain w/o a PG? i’d be interested in knowing so i can try it, along with others here.
Well Tony, I don’t like to divulge my “trade secrets” and all, but since you’re trying to call me out, I guess I will, just this once.
In a nutshell, I’d say that I’ve accomplished out you’ve said can’t be: I’ve obtained credit through my companies without a PG.
Now, since there have been tons of books and courses written on the topic (and a website devoted to it as you’ve pointed out on several occassions), it would be difficult if not impossible for me to go into in great detail here on this forum (not to mention all of the course writers getting mad at me :)), and again, in a nutshell, it’s all about the biz setup.
Besides my stellar credit, I’ve got nothing to offer a lender. My business own the assets. If I want a LOC, then the lender wants collateral. I don’t own the collateral, the business does. If the loan is based off of the collateral anyway, then what difference does it make to the bank if I personally guarantee the loan?
As far as credit cards goes, that DandB that’s so worthless gets me what I need.
Hope it helps,
Raj
“I don’t own the collateral, the business does. If the loan is based off of the collateral anyway, then what difference does it make to the bank if I personally guarantee the loan?”
a bank does not want to own ur physical assets in the event they have to actually collect on a defulted loan/LOC. they want to ding u, and to make the life of the PG’er very difficult to obtain credit again anywhere once u default. they also want to call u on any deficiency they come into once they auction those assets off at a discount.
now if u have pledged $20k (or $40k or $100k) in a bond or CD for the same amount in an LOC w/o an PG, then i’d love to have the name of the lender that has done that becuz they will get my biz, and a lot of other biz owners i know. i’d pay u a referral fee gracsiously if i close on an LOC from them. seriously i would. i have never found one to offer this for no PG so this is a milestone for me.
using a CD to secure an LOC is nothing new, nor is it any trick to be taught by a guru. any good banker will offer u that when u apply, or if u cannot get an LOC with just ur signiture and PG.
if u want to PM me w/o posting the info, that would be cool too
Tony, if your business has it’s own TIN or EIN then it has it’s own credit file, and in my young career, I haven’t run into any requests for my credit information just questions about what dept to send my bill to. They can sue the company and hold the company responsible for any deficencies in monies received on repossessed properties. I think what he’s trying to say is that since his business holds not only all of the physical assets but all of the money as well the banks are satisfied with that. If your business doesn’t have enough liquid holdings, or is too young, then that could well be the reason for the requests you receive for PG’s.
But that’s just my 2c’s worth.
there are some credit accounts that do not require a PG. i have several, including one MC by Home Depot. the others not requiring a PG that are avail are Sear’s, target, walmart, sam’s, sam’s discover, office depot, best buy…the list goes on. there are a lot of net 30’s that do not require a PG. now, some will ask for a PG, and some may require one after they run ur biz credit and it is not up to snuff, so then they rely on ur per credit. HOWEVER, we are talking about biz LOC’s and major credit cards.
“I haven’t run into any requests for my credit information just questions about what dept to send my bill to.”
redtigress,
what accounts do u have for the biz that only wanted to know where to send the bill? again, i am curious becuz i’d like to apply for them. i am serious.
don’t forget, ethically as a biz owner, we are responsible for any account our biz has whether it is PG’d or not. if it came to it, an attorney will find a way to pierce the corp veil when the co’s assets run dry after a default. don’t think otherwise
I was applying for a business start up loan with only my corp info (doing this at 4 banks). Nothing fancy, nothing hidden. Went to my local credit unions, asked to apply for business loans, filled out the applications and the only thing they asked me was “If you’re approved who do we put the attention to on the statements?” also asked was “Who’s the head of your Accounts Payable?” Granted this is with a corp, not an LLC or a sole proprietorship.
The one thing I forgot to add in that last post, I haven’t gotten answers yet, as I’m still in formation, so I can’t say that I have x dollars of credit through y bank in z program. What I can tell you is what I did, I have made applications that haven’t asked for them.
was there a place on the applications for ur SSN?
Honestly don’t remember, but I do know I didn’t give it.
then they will be calling back and asking for it :o
banks are very thorough about “who is gonna pay for this if it defaults” when lending money for businesses to begin with, and it’s even more stringent with start-ups. in most cases, they will bypass ur entire business plan and financial prospectus and go str8 for the per credit report to see what ur score is, then they will aske if u have assets to pledge as collateral.
“I was applying for a business start up loan with only my corp info (doing this at 4 banks).” see the first statement above
"Nothing fancy, nothing hidden. Went to my local credit unions, asked to apply for business loans, filled out the applications and the only thing they asked me was “If you’re approved who do we put the attention to on the statements?” also asked was “Who’s the head of your Accounts Payable?” Granted this is with a corp, not an LLC or a sole proprietorship. " i do not see any lender asking this question for a biz loan/loc, especially if they knew u were a start up. but then again, i hope i am wrong.
I’ve had the Thomas Kish system and quite honestly I didn’t get any money using it. I already had numerous credit lines and credit credit cards. It seemed to me his system involved a whole lot of musical chairs to not really get anywhere quickly.
The point of his system is to line up cash to fund deals.
It might be wise for you to find private money, partners with money, or something else to build up your cash reserves. I spent my time doing deals with various private lenders and after a couple of deals I’ve found they would make more money available to me for future deals.
So, I accomplished what I wanted to by simply doing deals and being successful at it. Really it only takes one or two private money lenders that believe in you and have had success with you. These private lenders can access so much more cash, so much faster… it just made more sense for me to do what I’m good at and let them figure out how to provide the funds to me.
I would agree that the time and money spent building credit would be better invested building credit with private parties. Focus on people who have money that is not earning much in the bank. They are much more likely to agree a deal with you as a person than a credit score (business or personal).
Business Lines of Credit have long been a staple of experienced real estate investors and prominent business professionals. It is only recently, last 10-15 years they’ve become more popular. And even though you may need a personal guarantee, they are much easier to get than they used to be. Their rates are fair, compared to hard lenders, can be obtained with lower FICO’s and your real estate solidly secures your withdrawals from them.
That being said, they are an excellent tool not only for experienced investors, but newbies alike. I expound quite a bit on them in My new ebook to be released this week online. Zero-Down Real Estate In 2020: Tools, Strategies and resources Today’s REI Investors Use to Buy Real Estate With Zero Down.
For reference, some companies that offer BLC’s to new and established companies online are Kabbage, Lendio and Fundera. Before you or others in here debunk BLC’s completely, Google and check out these companies and see if YOU can get funded. Chances are, you can.