Quote:
Originally posted by bobw
If I am looking to start a small business (likely set up a LLC) and need to take a loan to do so (approx $200k), what does the lendor look at to assess whether he will write the loan ? Personal assets, or the prospects of the business venture ?
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Well, to be honest, business financing is not my expertise, but I'll do the best I can with what I have picked up over the years....
The lender will definately take a look at everything of yours (personal) to decide whether or not to do the loan. Your credit history, score, assests, liabilities, child support payments, ect.
From my understanding, certain lenders will give you a "business" loan based solely on your personal information. It is doubtful that you will get a loan for 200k w/out something as collateral, such as an office building or equipment, depending on the type of business you are getting started.
If you would like to leave more specific details on how you are setting up the business, what the business is, and what you are potentially using for collateral, I could possibly give you more specific info. Until then, if anything else arises, feel free to post!