Building business credit!

[Shaun Draughn]

Hello everybody , I am currently in the early stages of building business credit & business Capitol (for my flips) and in doing so I know a lot of times you have to have these lines personally guaranteed due to lack of maturity of an LLC. Which is my biggest Dilemma/question. I have a friend who is a finance broker and is helping me with this stage. We applied to get an LOC for my business but when the underwriter came back with the decision it was... 1.) I didn't qualify for the Business LOC UNLESS somebody with "better credit" becomes a Cosigner. (I have a mid 700 score with good history) 2.) but They said I did qualify for a 25k personal LOC So my questions/concerns are: 1.)(humbly speaking) I make a 6 figure salary and being that I will have to personally guarantee most business lines I am trying to figure out the best way to leverage that aspect in obtaining LOC but I'm concerned that along with my current credit lines I would become a high risk to banks or lenders when it comes time to buy my own house because of the "possible debt" I could get into because of high credit lines. Comments advice?? And how have most of you veteran investors got your foot in the door with obtaining these Lines without having a cosigner or having the lines backed personally ?? Sorry bout the long wind!!!!

[Joshua Springer]

Personal guarantees don't show up on your credit report. If it's under a business entity you're just guaranteeing that if your business can't pay it you will. Some lenders will consider this as "debt" but the ones I work with have not.

As far as getting around the personal guarantee early on...good luck.

PS i'm not a veteran