Business Credit Without A Personal Guarantee….If You Are Still Living in 2009!
I want to set the record straight on getting business credit without a personal guarantee.
I had a customer named Sam C, who owned a small business in Frederick, MD. He was in the business of selling printing services to other small businesses. He had been in business for less than 2 years and he wanted to get some business credit without using his personal credit.
He had tried his local bank and other lending resources in his area.
After a few months he realized that as a small business owner, it was difficult to get business credit card without a personal guarantee. Every business owner wants their small business to grow and be able to have cash flow. Over my many years of experience, if a business owner lacks technical skill and reliable partners to help with the finance, the hard truth is that it may be hard to grow and acquire extra cash for the business.
So, what I suggested to Sam was that he needed to look for some finance companies, banks or firms that have a good understanding of what a small business owner experience, what they are currently experiencing and that the lender not look at the business owner as a number, but look understand their particular situation and be able to explain their story to the underwriter for the loan. Once I performed due diligence on Sam’s company to make sure he had the criteria on what the lenders were looking for, I was able to match Sam up with a lender who became his friend and ultimately Sam was funded.
What Should I Do Now?
If you want to build business credit without a personal guarantee, all you need to do is to make sure the lenders are convinced that your business is a viable one, that you know your stuff and you can show how you can pay them back. Do these things, plus a few others that I will teach you and you will improve your chances of getting business credit without a personal guarantee.
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