Front Office Football Central - View Single Post - From beginning to end : Starting my own business

Mustang · 02-09-2010, 11:03 AM

I had a idiot moment today or maybe it was a revelation. I'm working with a bank on doing a business loan. The loan was approved last year in the amount of $20K. It would be a line of credit that I'd have to personally guarantee (it is all great that I'm a LLC however, in the beginning, everyone wants personal guarantees as opposed to being backed solely by the business)

Anyhow... while I'm fretting about getting together taxes, updating the business plan, etc to go back it, I suddenly remember that we already have a $18K line of credit backed by the home equity. I'm not sure if there is any benefit to securing a new line of credit when essentially the collateral is the same thing.

I sent the message to my accountant for his input. The only thing I can see is that if I do a new loan, it would be in the business name so, that might be a benefit long term.

02-09-2010, 11:03 AM	#130
Mustang Grizzled Veteran Join Date: Oct 2000 Location: Wisconsin	I had a idiot moment today or maybe it was a revelation. I'm working with a bank on doing a business loan. The loan was approved last year in the amount of $20K. It would be a line of credit that I'd have to personally guarantee (it is all great that I'm a LLC however, in the beginning, everyone wants personal guarantees as opposed to being backed solely by the business) Anyhow... while I'm fretting about getting together taxes, updating the business plan, etc to go back it, I suddenly remember that we already have a $18K line of credit backed by the home equity. I'm not sure if there is any benefit to securing a new line of credit when essentially the collateral is the same thing. I sent the message to my accountant for his input. The only thing I can see is that if I do a new loan, it would be in the business name so, that might be a benefit long term. __________________ You, you will regret what you have done this day. I will make you regret ever being born. Your going to wish you never left your mothers womb, where it was warm and safe... and wet. i am going to show you pain you never knew existed, you are going to see a whole new spectrum of pain, like a Rainboooow. But! This rainbow is not just like any other rainbow, its...