Only the Right Credit Could Protect and Reward You and Your Family!
By Rachel Victoria, MSFS, former CFP
November 23, 2008
A business owner called me this week and said that he had
his business "set up properly" to protect himself financially. He
really had put a lot of effort into structuring and building his business. He
had set up his corporation with professional advice, built up his corporate
credit rating, and was even earning an adequate income from his business.
However, when I asked him if he was the personal
guarantor on his corporate loans (had
he signed personally for the corporate loans?), he said "yes". I
thought, "Oh, No!"
First of all, he's not alone. The majority of corporate lenders will require a good credit personal guarantor for every loan they offer and the majority of business owners do sign on the dotted line as the personal guarantor. (These lenders would also gladly accept the mortgage on your house, your first born, and any other assets as collateral that you are willing give to them.)
However, Avoiding Being
a Personal Guarantor on your business is Extremely Important to protecting you
and your family's assets and personal credit profiles!
Why
does being a Personal Guarantor on a Corporation
Put
you and your family at risk?
If your corporation happens to default on those loans (which could result from circumstances out of your control like frivolous lawsuits, disabilities, revenue declines, deaths, tax liens, judgments, actions of business partners or tenants, or uncontrollable economic factors), you as a personal guarantor are liable for those loan amounts. Legal action taken against you personally could ultimately result in judgments and garnishments attaching any of your assets that you own personally (that could include homes, real estate, autos, investments, businesses, future income, and assets).
Also, if you are borrowing personal credit to keep your business or your family afloat, it could result in the same risks and end result, and you may be missing out on significant tax deductions.
How Do You Avoid Being a Personal Guarantor and still get Corporate Credit?
Of course, you need to have a qualified corporation groomed to receive corporate credit. Next, there are specific corporate lenders that will lend only on the basis of your corporate credit rating. In fact, there are over 2500 working capital loans and unsecured lines of credit available to any qualifying business - regardless of your personal credit OR the age of your business. (That being said, if a lender can view a good credit profile for you personally, it will greatly enhance the amount of credit you can obtain even without signing as a personal guarantor.)
Imagine being able to obtain $20,000 -
$75,000 of unsecured corporate cash in the next 90 days alone (with more available over time) that you can
use to create verified, guaranteed, tested, passive income and never having the
fear of risking you or your family's home, retirement, investments, credit
profiles or financial future ...
To get started on Credit that
doesn't require a personal guarantor or even good personal credit, go to our
Products Page and Select Corporate Credit Option 1.
To learn more (if
not already here), please go to my website:
Copyright ©
2008 passiveincomeopportunities.net, All Rights Reserved
This article may be freely used and transmitted, but only in it's entirety, without any changes to it's content or linking.