Home: Message List - Need advice- loans denied due to partner's poor credit histo

Re: Need advice- loans denied due to partner's poor credit histo

AlvinC — Sat, 07 Jun 2008 18:19:33 GMT

You Mentioned "Have a professional analyze the credit problem", What type of professional and how would someone find them?

Re: Need advice- loans denied due to partner's poor credit histo

cheeks — Sat, 07 Jun 2008 16:05:24 GMT

Thanks Bridge for the insight. My partner had cosigned for a family member's auto loan about 8 years ago (as a student) and subsequently, the vehicle was repossessed. This isolated incidence seems to be the stickler for the underwriting dept. Although an explanation has been given, the rules cannot be changed.

Re: Need advice- loans denied due to partner's poor credit histo

Bridge — Fri, 06 Jun 2008 21:00:30 GMT

Please do not take this post the wrong way but just some things to think about:

1) If you are co-applicants, you are really on the hook for 100% anyway (joint and several liability) so consider putting it all in your name. You might be better off this way anyway and you would be in control of all the funding.

2) Think about what the professional lenders are telling you - you are a good risk, your partner is not. How long have you know your partner? Why did he get into credit trouble in the first place? Might be a good guy//woman just not good with money. Think about each persons responsibility in the partnership.

Re: Need advice- loans denied due to partner's poor credit histo

cheeks — Fri, 06 Jun 2008 13:03:06 GMT

Thanks for the advice. I'll have my attorney look into that.

Re: Need advice- loans denied due to partner's poor credit histo

Loan_4_You — Fri, 06 Jun 2008 03:38:31 GMT

You might consider contractualizing a payment plan from your partner and collateralizing it with a lien of personal property.

If you had more time, you could identify what is causing your partners score to be down and take the appropriate steps to get his score up. I would still pursue fixing your partners credit as soon as possible so that you do not have this arise in the future when you need capital for growth or equipment. Have a professional analyze the credit problem and give you a realistic timeline for it to be fixed. This will allow you to still do some planning for the future or even perhaps to refinance.

If you go forward with the loan without securing some interest from your partner it might create a problem for you down the road.

Re: Need advice- loans denied due to partner's poor credit histo

cheeks — Fri, 06 Jun 2008 02:50:21 GMT

We already have our business plan, 3-year projections, location and lease ready to go. All that is needed is the financing for the venture. Any ideas?

Need advice- loans denied due to partner's poor credit histo

cheeks — Fri, 06 Jun 2008 02:40:13 GMT

Hi all,
I'm starting a medical practice and my business partner has had a few credit mishaps in the past and we're now being denied credit because my partner is listed as co-guarantor on our business loan application. I'm told that the loan would be approved if I were the sole guarantor; yet, I do not want to have to carry so much liability ($400k). Any insight or advice as to how this can be remedied, or any other options that may exist?