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So im getting a small business loan for 30k in November. Its being co-signed by silent partner, its their bank and loan guy. They are wealthy.

My question is, we are also looking to purchase a home around the same time. If we get the mortgage first will it look bad to the bank for the business loan? Is a house seen as an asset? Could it help us?

Thanks in advance,

Jason
its a start up loan.

the business has no credit.

2 Thoughts on Small Business Loan Question?
  1. Reply
    wizjp
    April 30, 2011 at 1:01 am

    uh..why would one have anything to do with the other?

    If a LLC or legitimate business is getting a loan, the credit status of the members making up the buisness has no effect on it and vice versa.

    Entire point of incorporating in the first place is to seperate the individual from the corporate liability

    so it’s not a small business loan then? A personal loan will make a difference.

  2. Reply
    Felipe
    April 30, 2011 at 1:18 am

    Seems like nobody really answered your actual question. From your information it looks like the business loan you are obtaining is being personally guaranteed (PG) by your partner(s) thus your concern over the credit, and the new mortgage showing up. The answer is that yes, it could negatively affect your qualifications for the business loan because it would raise your DTI (debt to income) Ratio, and as a rule of thumb all new debt is treated as unfavorable….at first until you have established a minimum of 6 timely payments on that account. And the only way it would be considered an asset is if it has any Equity, which they will surely ask.

    The big question is have your partners tried to get the business loan without a PG? If the company has strong enough business credit, and strong financials, there are lenders that will not require a PG. If you would like a free consultation with one of our Underwriters visit us at http://www.mintfinancialgroup.com

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