loans for a ltd company

[buddyric]

I have a ltd company set up, but not yet trading, and need some advice on obtaining funding.

Question 1

Would a bank provide funds based on a good business plan on its own, or include my own credit status. which is poor and then decline to offer funds.

Question 2

Could i involove a friend as a director, with an excellent credit status use the same business plan and not act as a director myself to obtain funds, and then when funds are received the friend resigns and i resume the directorship.

Question 3

Would the funds received be liable for repayment by the original director or the company and myself as sole director.

Question 4

Is this legal or ethical, and does this type of transaction actual get carried out

 

[StevensOnln1]

1) As the company has no history, the bank will credit check the directors.

2) Would probably be viewed as fraud.

3) If the loan is made to the company, it is the company that would be liable to repay it. However the bank will almost certainly insist that you sign a personal guarantee, so that they can come to you for repayment if the company goes bust.

 

[businessfunding]

A bank will pay some attention to your business plan but they will really be interested in2 things

1. How much capitL are you introducing
2 what is the financial strength of the guarantor(s)

 

[alice_p]

Yes, the bank will look at your own person credit history. Not sure on number 2 but I personally would not, as another psoter said it could be classed as fraud.

 

[PaulThompson]

There may be other, ethical and legal means to sort this out, PM me if you would like to look at the solutions rather than creating problems.

Paul
Acorn Commercial Finance
Business Moneyfacts Commercial Mortgage Broker of the Year.

 

[imrankhaniiml]

I have a ltd company set up, but not yet trading, and need some advice on obtaining funding.

Question 1

Would a bank provide funds based on a good business plan on its own, or include my own credit status. which is poor and then decline to offer funds.

Question 2

Could i involove a friend as a director, with an excellent credit status use the same business plan and not act as a director myself to obtain funds, and then when funds are received the friend resigns and i resume the directorship.

Question 3

Would the funds received be liable for repayment by the original director or the company and myself as sole director.

Question 4

Is this legal or ethical, and does this type of transaction actual get carried out

You are worrying about your credit score. And you want to involve your friend in you business to use his credit score. But if you use hard money loan then you do not need to worry about your credit score because it is free from credit guidelines. It is also legal way to get loan. If you want to use hard money loan then go to Lendinguniverse.com