How do lenders decide financing terms for partnerships? 2 posts by 2 users

Posted: 03/17/2008 at 01:09PM

Could someone help me understand how lenders decide terms for financing a partnership?

In my case, I'm on the verge of creating a partnership. My prospective partner and I both have strong credit scores, and we both have good liquid funds. However, my credit ratio is weak, and his credit ratio is strong. We'll be 50/50 partners.

So what will the lenders say? Will they care that my credit is largely tapped out if my partner has tons of credit available?

Will the terms of the loan as far as interest rate goes be based on the strongest person in the partnership, or the strongest combination of factors (e.g if one person has cash and the other has credit), or on the weakest?

Thanks.