Hello. If I have a really good idea for a business but have poor credit. Are there any institutions at all that will grant me a loan if I take out money under a corporation and not under my own name? I consulted a banker about this and he said that Banks will still look at my credit rating. I thought that a corporation was supposed to be a separate legal entity? What gives?
2007-10-19 18:36:20 · 2 answers · asked by raffy_09 4 in Business & Finance ➔ Corporations
If you start a corporation, hire someone else as the officers of the corporation so your credit rating will not come into play.
2007-10-20 03:54:37 · answer #1 · answered by Feeling Mutual 7 · 0⤊ 0⤋
The corporation is a separate legal entity, but it doesn't have any credit rating if it's still an "idea for a business". If you are running the business, then you are the one who will be paying back the loan, so the bank wants some indication that they'll really get paid back - your poor credit doesn't show them that.
2007-10-20 02:24:37 · answer #2 · answered by Judy 7 · 0⤊ 0⤋