ForumsFinancing Tips

Welcome to the community.

Limited liability is just one of the points of incorporating, and as you indicated, it means a person's financial liability is limited to a fixed sum (usually the value of a person's investment in the company). Nevertheless, a shareholder is still liable for his or her own acts on behalf of the firm in most cases. For example, since a new company generally has no credit history and limited assets, one or more directors may be required to give a personal guarantee to lenders or other creditors. Those directors will then be liable for those debts in the event the company cannot pay.

The first place to begin seeking a business loan or credit line is your banker. If you have a few moments, take a glance at this in the Stories section:
http://smallbusinessonlinecommunity.bankofamerica.com/docs/DOC-1581?start=18

Hope this helps. Best wishes.

There is a post from "CASH FOR BIZ" as follows- - -
To help you I provide alternative financing for all small and medium
businesses.
Contact me at 347 223 1434 or email me at
vernel87@yahoo.com .
BE CAREFUL

Hello TennisMan,

I'm a technical assistance provider, there is a product for start-up businesses to secure financing. I'll be happy to assist you with starting a funding request. You can visit my blog page to learn more about the program "Accessing Capital", you can complete a pre-qualification form. From there I can send a pre-application to complete.

Feel free to email me at moreheadsconnections@gmail.com.

Warm regards,
TJ Morehead

Northeast and Tennis Man,

The SBA does not make loans directly to borrowers, but provides guarantees to participating lenders who provide the loan.

The 7a program is most likely the best fit with your respective financing requirements and can support financing for startups. With credit availability tightening for all borrowers, it's best to demonstrate that (a) you have cash to inject in the business, (b) you're business will generate sufficient cash flow to service the loan and (c) you have assets inside or outside the business to collateralize most of the loan.

The credit criterion will vary from bank to bank on which ones will fund startups, companies in your respective industries and how much cash you'll be required to invest on day one. Expect a cash investment requirement of at least 10%, but many banks are requiring as much as 30% of the total project cost.

In the early years of the business, you'll be building your company's credit profile. In the interim, your personal credit profile will be on the line. Minimum FICO scores will vary by bank. I've seen minimum score requirements range from 625 to 680 and higher.

I think one of you asked about the "credit elsewhere" criterion. The SBA participating lender will need to confirm to the SBA that you didn't qualify for non-SBA loans. As startup businesses, this shouldn't be a problem. I don't think there's a hard and fast requirement for you to get turned down first for a conventional loan.

Hope this is helpful - please feel free to visit my blog at www.Funding911.com for more information.

Marshall Lebovits

BOA is now offering a new product called "Gold Option" for Business, which in the past was called "Business Credit Express" up to 100K. Unsecured ofcourse the grantor is you and the borrower is the Business. I dont think any business begins credit without an individual grantor. Good luck with all and make sure you sit with a personal Banker to discuss details. Once you do have an open mind and receive all feedback you will be surprise with the knowledge you take back to the business. The reason I say it is from personal experience...I actually did two different scenarios and visited several Banking centers with questions on types of loans available for business. Good luck and stay connected