IT'S YOUR PATH TO SMART BUSINESS FINANCING! Are you providing personal gurantees for your business? Do you realize the major problem if you do this?
The problem is, signing a personal guarantee effectively nullifies any legal protection that you may have put in place -- such as incorporation -- to protect your house, car and other non-business assets from liens or foreclosure to satisfy business debts.
That's right: incorporation won't protect your home and assets if you sign a personal guarantee.
Could your business use a business credit line (up to $50,000)? This would certainly help your business preserve your cash flow and grow your business. Here is the best part, imagine doing that all…With NO PERSONAL GUARANTEES!
Perhaps you already have a problem. Let me ask you, "Have you gotten trade credit or a bank loan for your business, and wound up signing a personal guarantee?"
Not good.
Let me say it again, "Did you realize that by signing a personal guarantee you are effectively nullifying the personal asset protection your corporation or LLC affords you?"
If something goes wrong and you can't pay your loan, your bank or other creditor, thanks to the personal guarantee, will be after your personal assets faster than you can say "Default."
All because you signed that blasted personal guarantee. Trouble is banks seem to demand them. Vendors who sell you goods or services or credit require them.
Unless you know how to get around them.
Well I have some good news for you. The main reason you probably formed your LLC or corporation in the first place was to separate your personal assets from your business assets. You can also take steps (28 steps, to be exact) to separate your business credit from your personal credit.
When you do, you're able to access credit like this,Here are a few steps to follow in order to obtain a good biz credit record.http://fastbusinesscredit.com/aboutfastbusinesscredit.html-without a personal guarantee and REGARDLESS of your personal credit history:
