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Originally Posted by RickFLM4
Anything owned by the business is collateral, not you personally. I did not provide a personal guarantee. In my case, the only asset of my LLC is A/R and the loan proceeds sitting as cash, so no big deal. I can understand if a business has other assets and doesn’t want to use them as security because they are used for security of other debt. Yes, you have to agree to not use the money except for the business but doubt there will be any audits or issues as long as payments are made. In my case, I have no intention of using it for anything other than an extra cushion and will probably repay it early when the economy is in a better place in a year or two.
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I understand but also being a 1 person scorp who knows if they could claim my house is technically a business asset since I work here etc. Would be nice to have the cheap loan in case, but for me personally, rather keep the government out of my life as much as possible.
Quote:
Originally Posted by hubbahubba
Terms for mine were just as Rick's. Felt like cheap insurance to me. What part did you see that was onerous?
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Honestly I don't remember all the exact details. I did some research online when they offered me the loan and saw lots of stuff from attorneys going over the terms and I just didn't like that much government involvement in my business. I remember if you sold any assets you had to let them know, you had to let them know if you got any other loans etc.
Again that's just my opinion for my business. While I have had some clients cancel I'm still ok for now. Only concern is since my business is more of a subscription type service there is a delay between my clients businesses being impacted and them canceling. If it was life or death you best believe I would take the money regardless of any terms.