Helping A Small Business Owner With Bad Credit

Discussion forum for all things related to small business, business financing and business credit cards.
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dunn2015
 
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Helping A Small Business Owner With Bad Credit

Postby dunn2015 » Sun Sep 18, 2016 7:22 pm

Hi All,

I'm new here and would like to know:

Do you recommend having a small business owner needing funding use my name under their company to improve their credit score in order to qualify for a business line of credit?? It's a 3 year old real estate llc. I'm not sure how this works can someone plz advise me on this issue....

Thanks


Tubpbs
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Re: Helping A Small Business Owner With Bad Credit

Postby Tubpbs » Sun Sep 18, 2016 8:34 pm

dunn2015 wrote:Hi All,

I'm new here and would like to know:

Do you recommend having a small business owner needing funding use my name under their company to improve their credit score in order to qualify for a business line of credit?? It's a 3 year old real estate llc. I'm not sure how this works can someone plz advise me on this issue....

Thanks


I wouldn't put my name on anything for anyone especially for someone with bad credit. It makes no sense.
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TXviking
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Re: Helping A Small Business Owner With Bad Credit

Postby TXviking » Mon Sep 19, 2016 3:49 am

Agreeing to be responsible for the debts of someone who already has bad credit seems like a surefire way to ruin your own credit. :beat:

Tubpbs
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Re: Helping A Small Business Owner With Bad Credit

Postby Tubpbs » Mon Sep 19, 2016 5:16 am

TXviking wrote:Agreeing to be responsible for the debts of someone who already has bad credit seems like a surefire way to ruin your own credit. :beat:


And potentially your life. Small business operates like a person on a much larger scale. They incur debt at a much higher rate than a person. If there is any chance someone could determine or attempt to determine you're personally liable for the actions or debts of the business, it could have a serious and lasting effect on you and your family.
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chicagocubs222
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Re: Helping A Small Business Owner With Bad Credit

Postby chicagocubs222 » Tue Oct 11, 2016 11:31 am

Tubpbs wrote:
dunn2015 wrote:Hi All,

I'm new here and would like to know:

Do you recommend having a small business owner needing funding use my name under their company to improve their credit score in order to qualify for a business line of credit?? It's a 3 year old real estate llc. I'm not sure how this works can someone plz advise me on this issue....

Thanks


I wouldn't put my name on anything for anyone especially for someone with bad credit. It makes no sense.


do NOT do this. its most likely a scam, or well it starts out as a good idea and looks great. lemme guess, they came to u showing you deals, or you met them at a "seminar". they show you a flashy, awesome "deal" of a rehab or real estate project that is a "sure fire" winner. Just need the money to buy the materials and closing costs, etc. You sign for them, they get awesome lines of credits, they either a) use it legitimatelly in the deal, but they are new to the game (most seasoned vets would NOT need to use someone elses money, they already have it), and the deal falls apart, crashes and burns. you lose out,and are on the hook. or b) there is no real estate project, they use your line of credit to party it up in their "business". do NOT DO THIS. you will thank me later

Judemik
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Re: Helping A Small Business Owner With Bad Credit

Postby Judemik » Sun Oct 16, 2016 11:03 pm

I wouldn't do that. That will be a suicide. When you know they have a bad credit , it is safe you don't put your name in their company. It will affect your credit score.

webbrowan
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Re: Helping A Small Business Owner With Bad Credit

Postby webbrowan » Sun Nov 20, 2016 9:46 pm

I would most definitely NOT want to lend my name to someone who has bad credit. Even if it was my family member or close friend. There are just some lines that shouldn't be crossed - and that's involving money with your relationships! Even when it comes to <a href="http://financesmarter.com.au/financing-a-car-with-a-bad-credit-history/">financing a car with a bad credit history</a>, these days there are so many options! If it were you, would you want to run the risk of ruining someone else's good name in the event that you can't pay? Some people have no qualms about doing such things so protect yourself and don't get yourself into situations like this to begin with!



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