thouse Posted January 21, 2009 Share Posted January 21, 2009 I have a a friend that started a business, and he has been paying for it out of his pocket, along with his regular household bills. My question is how would he go about getting business credit? Or maybe a grant? I believe he has a LLC. Thanks in advance for any responses. Link to comment
NowandZen Posted January 21, 2009 Share Posted January 21, 2009 In this market, he will need collateral or a personal guaranty. Link to comment
thouse Posted January 21, 2009 Author Share Posted January 21, 2009 If he owns a home would that serve as collateral? Link to comment
Davie Posted January 21, 2009 Share Posted January 21, 2009 A whip round at the local church fest Link to comment
NowandZen Posted January 21, 2009 Share Posted January 21, 2009 If he owns a home would that serve as collateral? Yes, but: He would likely have to take out a 2nd mortgage, which is risky and the LTV (loan to value) amounts are getting rather conservative these days. ( I am assuming he's in the U.S.) Link to comment
COtuner Posted January 21, 2009 Share Posted January 21, 2009 I have a a friend that started a business, and he has been paying for it out of his pocket, along with his regular household bills. My question is how would he go about getting business credit? Or maybe a grant? I believe he has a LLC. Thanks in advance for any responses. Suggest he talk to the SBA and see if they have any ideas. This is probably a common problem right now. Link to comment
thouse Posted January 21, 2009 Author Share Posted January 21, 2009 Yes we are in the U.S. Link to comment
catfeeder Posted January 21, 2009 Share Posted January 21, 2009 If he owns a home would that serve as collateral? It's not sound to put a primary residence at risk for a business startup, and it's likely not possible in this market anyway. Sorry about that. Link to comment
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