05-29-2014 08:15 AM
Have any of you got a non secured loan? If so how did the process go? how long did it take you to find one and who did you do your loan with. It seems at my age of 23 with little to no start up capital and limited credit history I would probably need a secured loan for sure. But how do I dive deeper get a bigger loan and make it non secured. I'm not here to scam the system I would just like to have my personal assets safe just in case. I will be giving it my all.
Thanks guys and gals.
05-29-2014 03:44 PM
Similar to my response to your other post, there are very few if any unsecured financing programs available for businesses. There are programs out there that do not utilize equipment as the collateral (such as with equipment leasing and finance programs), however, they generally will involve a "blanket lien" being placed on your business that liens up all of your business assets including chattel real (that is, your contracts), inventory, and accounts receivable.
In either case, you will need to act as a personal guarantor on the loan meaning that it will not initially be placed on your personal credit (thereby affecting your debt-to-income ratio) but in the event of default, they can place the negative information on your personal credit.
There are "corporate only" finance transactions that do not require PGs (personal guarantors), however, the company has to have a fairly large number of employees and diversity of ownership (that is, multiple owners) to qualify.
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